There is a whole lot of misinfo about the bank reporting proposals under consider, that @SecYellen clears up here:
One imp one: Those protecting $$ evaders push myth this proposal means IRS will see every transaction above $600 in all bank accounts
That is completely false.
One imp one: Those protecting $$ evaders push myth this proposal means IRS will see every transaction above $600 in all bank accounts
That is completely false.
https://twitter.com/CBSEveningNews/status/1448018574115737602
Proposal under consideration actually adds a bit of addl info to existing reports that fin institutions *already provide* to IRS.
On TOTAL money flowing into accounts, and TOTAL money flowing out.
No personal transaction details whatsoever.
On TOTAL money flowing into accounts, and TOTAL money flowing out.
No personal transaction details whatsoever.
Why is this helpful?
IRS has third-party info on income sources accrue to American workers (wages, pension, benefits, etc.) And compliance is 95%+
In the absence of any info, evaders know that their underpayment is unlikely to be detected. So compliance under 50%
IRS has third-party info on income sources accrue to American workers (wages, pension, benefits, etc.) And compliance is 95%+
In the absence of any info, evaders know that their underpayment is unlikely to be detected. So compliance under 50%
Imagine someone with $3M of deposits, reporting income of only $10K
Maybe explanation here, but something IRS can prioritize when making enfcmt decisions
For compliant taxpayers, there is only benefit here! Lower likelihood of costly, burdensome audit when better info exists
Maybe explanation here, but something IRS can prioritize when making enfcmt decisions
For compliant taxpayers, there is only benefit here! Lower likelihood of costly, burdensome audit when better info exists
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