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.
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.
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%
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

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More from @NatashaRSarin

16 Nov 20
Over the last decade, audit rates have fallen most for the very richest Americans.

The result?

Less tax revenue and a more unequal tax system.

My latest in @bopinion…

A thread:
IRS has been gutted in the last decade, the result of a partisan attack on the agency.

Budget is down 15% in real terms, workforce down 20%

Attrition highest for revenue agents capable of examining complex returns of the wealthy--like @realDonaldTrump
Unsurprisingly, strapped for resources, IRS has been forced to pull back from examination scrutiny

Audit rates for those making $10M+ annually are down nearly 80%

EITC recipients less than half that!
Read 7 tweets
28 Sep 20
This is 1000% true.

The IRS has been gutted in the last decade, and the beneficiaries are the ultra-wealthy like President Trump.

A thread:
Audit rates for millionaires are down 75% in the last decade

Today, you are as likely to be audited if you are in the top 1% as if you are on the EITC

The result is a tax system that facilitates the kind of illegal games Trump has been playing for decades
Just a few 100 taxpayers cost the IRS $10B between 2014-2016

And they lacked the resources to even pursue these cases!…
Read 7 tweets

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