Biden wants to get into your bank account

[mystery-ak]

September 17, 2021
Biden wants to get into your bank account
By Andrea Widburg

We’ve long been used to the fact that banks and credit unions must report to the federal government any transactions greater than $10,000. This requirement goes back to 1970 when $10,000 was equivalent to around $70,000 today. The law is a way to track criminal activity such as bank fraud. But how would you feel if the government requires banks to report to the government — i.e., the IRS — every transaction of $600 or more? Well, if Democrats pass their $3.5 trillion American Families Plan, that’s exactly what will happen.

WBNS, an Ohio affiliate of CBS, has a good summary of how the proposed government incursion into just about every American bank and credit union account would work:

    Under the proposed legislation, “[f]inancial institutions would report data on financial accounts in an information return. The annual return will report gross inflows and outflows with a breakdown for physical cash, transactions with a foreign account, and transfers to and from another account with the same owner. This requirement would apply to all business and personal accounts from financial institutions, including bank, loan, and investment accounts, with the exception of accounts below a low de minimis gross flow threshold of $600 or fair market value of $600.”

    The measure, if approved, would begin in 2023.

    So we can verify: yes, under President Biden's proposed legislation the IRS would have more information on financial accounts with more than $600.

more
https://www.americanthinker.com/blog/2021/09/biden_wants_to_get_into_your_bank_account.html

[mountaineer]

Dr. Mark Young
@MarkYoungTruth
Today @JoeBiden  told us that he needs to monitor all bank accounts with over $600,  in order to catch tax cheating billionaires, because everyone knows that if you have $600 in the bank you must be a billionaire.
12:59 AM · Sep 17, 2021

[Kamaji]

September 17, 2021
Biden wants to get into your bank account
By Andrea Widburg

We’ve long been used to the fact that banks and credit unions must report to the federal government any transactions greater than $10,000. This requirement goes back to 1970 when $10,000 was equivalent to around $70,000 today. The law is a way to track criminal activity such as bank fraud. But how would you feel if the government requires banks to report to the government — i.e., the IRS — every transaction of $600 or more? Well, if Democrats pass their $3.5 trillion American Families Plan, that’s exactly what will happen.

WBNS, an Ohio affiliate of CBS, has a good summary of how the proposed government incursion into just about every American bank and credit union account would work:

more
https://www.americanthinker.com/blog/2021/09/biden_wants_to_get_into_your_bank_account.html

And, if you don't file your individual income tax return promptly on time, the IRS will send you a notice of deficiency assessing you income tax based on the so-called "bank account method" where every inflow will be treated as taxable income, and every outgo as a nondeductible personal expense.

For people who frequently use their bank accounts for transactional purposes, this will result in very high tax assessments.  And, since you only have 90 days to petition the Tax Court once you get a notice of deficiency, this will lead to a lot of people missing the boat on their chance to dispute the assessment without having to pay the full tax first (that's the Flora rule).

That's what this is really all about.

[mystery-ak]

And, if you don't file your individual income tax return promptly on time, the IRS will send you a notice of deficiency assessing you income tax based on the so-called "bank account method" where every inflow will be treated as taxable income, and every outgo as a nondeductible personal expense.

For people who frequently use their bank accounts for transactional purposes, this will result in very high tax assessments.  And, since you only have 90 days to petition the Tax Court once you get a notice of deficiency, this will lead to a lot of people missing the boat on their chance to dispute the assessment without having to pay the full tax first (that's the Flora rule).

That's what this is really all about.

@Kamaji

Well...this would include auto-deposits of your paychecks, SSI payments etc..would it not....then paying your bills from your checking account.

Most everyone has auto-deposit of their paychecks and most probably more that $600...

..and what about savings accounts...am I supposed to stop saving or withdraw it all and close that account...what a mess this will be.

[Kamaji]

@Kamaji

Well...this would include auto-deposits of your paychecks, SSI payments etc..would it not....then paying your bills from your checking account.

Most everyone has auto-deposit of their paychecks and most probably more that $600...

..and what about savings accounts...am I supposed to stop saving or withdraw it all and close that account...what a mess this will be.

Ask Herr Biden and his cronies in Congress.  The bottom line is this:  if you don't file your tax return on time, and report every penny of income, the IRS will almost certainly start using this new source of bank account information to make assessments based solely on inflows - they traditionally do this only in the case of extreme refusal by a person to cooperate with an income tax examination, and right now they have to subpoena your bank account records first.

Now, they'll be able to do a bank-account assessment as a matter of course and automatically - i.e., the computers will generate the assessments with no more than a perfunctory sign-off by a rubber-stamping junior manager - and everyone who receives one of these assessments will then be behind the eight-ball, because once the IRS issues an assessment, it is presumed correct until and unless the taxpayer can prove otherwise.

That presumption makes it a lot more expensive to deal with an assessment when there are a lot of cash transactions.  It also means a person will more often be staring down the barrel of a threatened bank account levy or other asset seizure even if, once a tax return is fully prepared and filed, the person doesn't actually owe anything.

It's just another way the IRS will have to abuse people.

[DefiantMassRINO]

This is an incremental step towards the eventual confiscation of private savings ... for the children.

[mountaineer]

I don't know whether this is related, but Mr. M attended the monthly meeting of our rod & gun club last night. They have a ton of cash on hand because of royalties from natural gas production. Having decided to take $250,000 out of checking (!!) and invest it in a mutual fund, the treasurer went to the bank to withdraw the funds. They said he could do it only by paying a $500 fee. He was irate, but did it. He later went online to complain about what the bank had done, someone from the bank saw it, and they ended up refunding the charge. But, seriously, $500 to withdraw our own money?!?

Maybe banks are upping their fees for ordinary transactions to cover the increased costs they will face when they have to comply with der Fuhrer's new banking reporting laws.