Joe Biden seems to be very determined to make sure the IRS has access to the bank accounts of Americans.
In a plan that is trumpeted asa a way to crack down on wealthy people avoiding taxes, the fine print shows this is something that will affect millions of average Americans too.
Here’s the gist of it. The proposal would require banks, credit unions and other financial institutions to report annually all the deposits and withdrawals of $600 or more to the IRS.
For now the IRS would not have full access to every transaction, but they would know about everything you do that involves $600 or more.
According to the White House and their mathematics, they believe it would generate $463 billion in additional revenue over the next 10 years.
Here’s what Janet Yellin said recently on CBS News, according to a Fox Business report.
“The proposal involves no reporting of individual transactions of any individual. If somebody reports an income of $10,000 and they had $3 million go out of their checking account, that tells the IRS that’s an individual you might audit.”
Obviously, this has created a legitimate concern from average and hard working Americans that the IRS having this much control and knowledge of personal finances will lead to an onslaught of new audits each year. But the Treasury has said that right now, it’s not Biden’s plan to increase audits on anyone earning less than $400,000 each year.
The banks are as opposed to this as most rational Americans. More than 40 banks fired off a letter to Nancy Pelosi and Kevin McCarthy essentially begging them not to do this. Their message is it puts a “tremendous liability” for all involved.