Yellen on $600 IRS reporting requirement: 'There's a lot of tax fraud and cheating that's going on.'

[mystery-ak]

Yellen on $600 IRS reporting requirement: 'There's a lot of tax fraud and cheating that's going on.'
The treasury secretary insists the rule is aimed at 'high-income individuals'

   By Breck Dumas FOXBusiness

Treasury Secretary Janet Yellen continues her pitch for the Biden administration's proposal that would require banks to report every customer's transaction of $600 or more to the IRS, insisting it is aimed at wealthy people while saying "there's a lot of tax fraud and cheating that's going on."

The White House estimates that the plan would raise more than $460 billion over the next decade for the federal government through ramped-up enforcement, and the administration is trying to sell the plan as a way to make money from rich folks –  although all Americans would be subject to the rule.

In a clip aired Tuesday evening, CBS News' Norah O'Donnell asked Yellen regarding the plan, "Does this mean that the government is trying to peek into our pocketbooks if you want to look at $600 transactions?"

"Absolutely not," the treasury secretary replied, insisting, "I think this proposal has been seriously mischaracterized. The proposal involves no reporting of individual transactions of any individual."

Then Yellen went into how there are "individuals" the IRS does not receive enough information about.

"Look, the big picture is that we have a tax gap that over the next decade is estimated at $7 trillion," she continued. "Namely, a shortfall in the amount that the IRS is collecting due to a failure of individuals to report the income that they have earned."

more
https://www.foxbusiness.com/politics/yellen-irs-reporting-requirement-tax-fraud-and-cheating

[libertybele]

Well, you could open up several accounts and make sure that they are under the $600 threshold. It would be a major hassle, but perhaps it would keep Uncle Sam's nose out of your business.

[GtHawk]

Why yes there is, predominately by illegals democrat politicians and their families

[DCPatriot]

Well, you could open up several accounts and make sure that they are under the $600 threshold. It would be a major hassle, but perhaps it would keep Uncle Sam's nose out of your business.

???

What good is that going to do, @libertybele ?

It has nothing to do with account BALANCES.  Has to do with any transaction that moves a minimum of $600 in or out, on a single transaction.

[240B]

Well, you could open up several accounts and make sure that they are under the $600 threshold. It would be a major hassle, but perhaps it would keep Uncle Sam's nose out of your business.

Nope. With the banks working hand-in-hand with NSA/CIA/FBI/IRS, they will get notified with every new account opened by anyone. Unless you have 50 fake names and SSNs to match, it will not take them long to flag you. And then you will become even more of a target than before.

[mountaineer]

Has to do with any transaction that moves a minimum of $600 in or out, on a single transaction.

Like writing a rent check or paying an insurance premium? This is crazy.

[mystery-ak]

'I think this proposal has been seriously mischaracterized': Janet Yellen defends plan for IRS to snoop on accounts with more than $600 and claims it will help make billionaires pay more tax

    The Treasury Secretary has since September pushed for tough reporting rules
    She wants the IRS to be able to look at any accounts with more than $600
    Yellen has argued that the move will reduce the amount hidden by billionaires
    Critics fear that the ruling will allow the IRS to spy on Americans' bank balances
    Yellen on Tuesday told CBS that the proposal had been 'mischaracterized'
    She said there would be 'no reporting of individual transactions of any individual'

By Harriet Alexander For Dailymail.com

Published: 01:43 EDT, 13 October 2021 | Updated: 04:17 EDT, 13 October 2021


The Treasury Secretary has defended plans to monitor bank transactions of more than $600, insisting that the scheme was designed to end 'tax fraud' by billionaires, and would not mean Americans' accounts were recorded.

The new proposal requires financial institutions to annually report the total amount that went in and out of the bank as well as loan and investment accounts if within that year the accounts hold a value of at least $600 or if the total transactions are $600 or more in a year.

More simply, this means that if total funds flowing in and out of a credit or debit account equal at least $600, banks have to report those figures to the IRS. This includes paychecks or money transferred from apps like PayPal.

more
https://www.dailymail.co.uk/news/article-10086681/This-seriously-mischaracterized-Janet-Yellen-defends-plan-IRS-snoop-accounts.html

[Wingnut]

Cash is king. 

[240B]

Cash is king.

Not really. A lot of places around where I am will not take cash or a check.
In my opinion, before very long America is going to make cash transactions illegal over a certain amount.

[Kamaji]

Ask #FJB about tax fraud - he committed it to the tune of $500k.

[DefiantMassRINO]

$600 seems like an suspiciously low amount for snagging wealthy tax cheats.  Wealthy tax cheats aren't going to be writing checks to hide their untaxed income.

Tracking private post-tax-income transactions is definitely tyrannical over-reach. Does this mean the the Federal Reserve is now a tax collection agency?

At the dog track, if you won more than $500 you had to fill out an IRS form.

I've seen people from the projects exchange cash for money orders to pay bills to hide their under-the-table income.

The unintended consequence is that working people are less likely to trust the traditional banking system.  I wouldn't be surprised if an encrypted shadow banking system emerged.

In the future, the government will attempt to eliminate cash and all non-electronic transactions in its quest to allegedly catch wealthy tax cheats.  This is why governments see private crypto-currencies as a threat - it's much more difficult to track and stop.

[Kamaji]

$600 seems like an suspiciously low amount for snagging wealthy tax cheats.  Wealthy tax cheats aren't going to be writing checks to hide their untaxed income.

Tracking private post-tax-income transactions is definitely tyrannical over-reach. Does this mean the the Federal Reserve is now a tax collection agency?

At the dog track, if you won more than $500 you had to fill out an IRS form.

I've seen people from the projects exchange cash for money orders to pay bills to hide their under-the-table income.

The unintended consequence is that working people are less likely to trust the traditional banking system.  I wouldn't be surprised if an encrypted shadow banking system emerged.

In the future, the government will attempt to eliminate cash and all non-electronic transactions in its quest to allegedly catch wealthy tax cheats.  This is why governments see private crypto-currencies as a threat - it's much more difficult to track and stop.

It's probably a carryover from the old Form 1099 reporting requirements, under which a business that makes payments of $600 or more during the year to individuals and certain types of businesses must report those payments on Form 1099.

[Right_in_Virginia]

It's probably a carryover from the old Form 1099 reporting requirements, under which a business that makes payments of $600 or more during the year to individuals and certain types of businesses must report those payments on Form 1099.

Isn't this still the "law" @Kamaji ?

[Kamaji]

Isn't this still the "law" @Kamaji ?

As far as I know, yes.  I'm just thinking that somebody used the $600 number because that's what's used for current 1099 reporting.

[Free Vulcan]

Ain't got a thing to do with tax cheating.

They just want to legally monitor your bank account.

[mountaineer]

Ain't got a thing to do with tax cheating.

They just want to legally monitor your bank account.

Of course they do.
 At least they'll find ours pretty boring.

[Free Vulcan]

Of course they do.
 At least they'll find ours pretty boring.

Now with the supply shortages, they want to monitor 'hoarding'.

If you are unvaccinated but buy something in public, they can track you and round you up.

The possibilities for abuse are endless.

[mountaineer]

Now with the supply shortages, they want to monitor 'hoarding'.

Great. I have something like 57 rolls of toilet paper. Maybe I could hide my guns among the rolls, and then bury the whole lot of it somewhere in the back yard.

[libertybele]

Of course they do.
 At least they'll find ours pretty boring.

We are on SS and make a pittance, yet we were audited and had to wait almost 4 mos. for our measly tax return.

Just wondering if this also includes trust accounts?  A trust technically isn't an individual.  What about brokerage accounts?

I've already had enough of FJB!

[skeeter]

Ain't got a thing to do with tax cheating.

They just want to legally monitor your bank account.

This will come in real handy when they start monitoring social media for uppity anti government types. There’s always something they can ding you for, and if they can’t find anything they’ll still bankrupt you trying to defend yourself.

[libertybele]

Great. I have something like 57 rolls of toilet paper. Maybe I could hide my guns among the rolls, and then bury the whole lot of it somewhere in the back yard.

I thought you lost your guns in the flood?

[mountaineer]

I thought you lost your guns in the flood?

Oh, yeah. The flood of 2005, as I recall.

[mountaineer]

And I'm not stocking the freezer with meat whenever I find a bargain. No sirree, not hoarding that, either.

... The price hikes were spread throughout the aisles of the grocery store, with all six major food group categories registering higher prices. The index for meats, poultry, fish, and eggs rose 2.2 percent over the past month and 10.5 percent compared with a year ago.  The index for fruits and vegetables rose 0.6 percent in September, a larger increase than the 0.2-percent increase reported in August, and is up three percent compared with a year ago. The index for cereals and bakery products rose 1.1 percent over the month and 2.7 percent over the past year.

Some of the biggest jumps on an annual basis:

    Ground beef: + 10.6 percent.
    Steaks: +22.1 percent.
    Bacon: +19.3 percent.
    Pork roasts, ribs, steaks: +19.2 percent.
    Chickens: +17.1 percent.
    Fresh fish: +10.7 percent.
    Eggs: +12.6 percent.
    Peanut Butter: +6.2 percent.
    Apples: + 7.8 percent.
    Ham: +7 percent.
    Baby food: +4.4 percent.

Bidenflation: Prices Soar for Hamburgers, Bacon, Ribs, Chicken, Baby Food, and Peanut Butter

[cato potatoe]

Something tells me they won't spend a lot of time reconciling Janet Yellen's accounts.

[Smokin Joe]

Ain't got a thing to do with tax cheating.

They just want to legally monitor your bank account.

Let's say a person is committing tax fraud at the $600.00 level.
How much is it going to cost to pick them out of the pile and prosecute them?

Just how much fraud can one commit with only two zeros after the first integer?

How much, net, is this going to cost the people who aren't committing fraud (not to mention the accused to defend against it)?
Or is this just another malicious weaponization of the IRS?