A Biden administration effort to require that bank accounts of more than $600 or any transactions above $600 be reported to the Internal Revenue Service is causing plenty of grumbles from, well, just about anyone who hears about it. It’s a horrible idea, and not just because of the access it gives the federal government to personal information and transactions, though that’s reason enough to kill it.

And it’s not just because the security for all that personal data is suspect, reliant not only on banks but also software providers and ultimately the federal government to keep safe.

The worst part of this ill-conceived effort is that the IRS doesn’t seem to have a plan to use the data. The ostensible reason for the transaction reporting is to allow the IRS to catch scofflaws who underreport income.

Supporting the effort is bulking up the IRS with $80 billion in new revenue, allowing the service to add huge teams of new auditors to source out the claimed $485 billion in tax revenue that went unpaid due to financial dodges.

All of this is tucked into the $3.5 trillion spending package Biden is pushing. It’s there to show the bill isn’t just about spending. It shows some revenue, much needed when trying to sell a $3.5 trillion economic package.

Banks obviously hate it due to extra costs. If enacted, it will also likely steer the public away from banks to avoid the IRS scrutiny.

Some lawmakers are suggesting the $600 amount be raised to $10,000. The dollar amount, though, is only a secondary point to the main concern about government intrusion.

It should scare the bejeebers out of everyone to think the IRS will collect all your financial information and get back to you if it finds something amiss, especially when its criteria is nothing stronger than seeking out unusual activity.

Banks already report high dollar transactions and odd activity. The $3.5 trillion economic package has a long way to go before passage. Though the whole thing deserves a fate in the scrapyard, at the very least it should eliminate this $80 billion IRS expense and the consequential government intrusions into the lives and finances of its citizens.

— Today’s News-Herald

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(10) comments

Donnabrowninc

It’s not 600 or 10000 dollar individual transactions it is the total. Anyone with a mortgage or rent, car payment, utility bills will have more than 10000 annual transaction amount, everyone will be subject to the overreach. If you pay cash to a contractor, babysitter, anyone you could trigger an audit. Once they start auditing you the IRS will look at your past filings as well. It will be much easier and less costly for the IRS to go after the middle class to recoup back taxes and penalties than the wealthy. We don’t have an army of attorneys and tax accountants like the wealthy do

pitypudd

BB... Rumors say Biden's going to sign the EO tomorrow on the $600.00 transactions![beam]

totckehouse

Just two words: “Slippery Slope”!

The potential for misuse of this information are endless. Requiring the banks to report transactions of $10,000 is justifiable; reporting $600 transactions is a fishing expedition and an invasion of privacy!

Jim

Yesman123

In 2018, the Pelosis' wealth has skyrocketed," he said. "That year, her financial disclosure report revealed a net worth of over $114 million. In 2019, Pelosi's assets total up to a whopping $271 million and in 2020, those numbers went up even more to as high as $315 million."

"In 2007, Visa worried the new Democrat Congress would target their swipe fees, costing them billions. So they hired a team of lobbyists who descended on Pelosi," Watters added. "Visa's CEO personally met with her. She got donations from them. One of his advisers left and became a visa lobbyist himself."

"Suddenly, Paul Pelosi got a phone call from his broker. He was in luck," Watters continued. "Paul was offered a prescreened invite to get in early on Visa's $18 billion IPO. Did Nancy and her husband hesitate? No, they bought between $1 million and $5 million worth of Visa stock. But it gets better. While Pelosi was speaker, bills that would have hurt Visa's stock price were blocked in the House. Visa shares going up over 200 percent during the time, making the Pelosis a fortune on paper."

"In January, the Pelosis got a million dollars worth of Tesla stock right before Joe Biden announced electric car incentives in June. The Pelosi family cashed in big time just before Congress was set to pounce on Big Tech. Mr. Pelosi exercised options on Google's parent company, Alphabet, making an easy $5.3 million."

BigBob

Just one lie told by "yes" - THE FACTS: A lying meme went viral wrongly accusing Pelosi of investing millions in Tesla the day before Biden signed an executive order on electric vehicles circulated widely on Facebook on Monday with millions of views and more than 275,000 shares.”1/24/21 Nancy buys $1.25 million in Tesla Stock…” the posts read. “1/25/21 Joe signs EO for all Fed Vehicles to be EV!” Some morons sharing the post made more lying accusations. “IMAGINE THAT! ISN’T THIS CALLED INSIDER TRADING???”.

It’s true that Pelosi’s husband, Paul Pelosi, made a Tesla investment in December of 2020, according to the House Speaker’s financial disclosure documents published Jan. 21. However, the date and amount of the investment don’t match the lie that’s circulating online. According to Pelosi’s latest Periodic Transaction Report filed with Congress, her husband on Dec. 22 invested between $500,000 and $1 million in 25 call options for Tesla stock at a strike price of $500 until March 2022.

Too old for this

The amount is not exactly the issue, the timing is. You say that he bought Tesla stock on 12/22, and on 1/25, Biden signs an EO mandating electric vehicles for the Feds. Did she know that this order was coming?

Still, the article was about the $600 reporting requirements that he wants to put on banks. Currently, a Currency Transaction Report if filed on any cash deposit or withdrawal of $10,000 or more. The reason for this was, allegedly, to track drug proceeds that were being laundered or shipped out of the country. Those reports take time to complete and the customer has to answer a bunch of questions. Imagine how slowly the line will move if every transaction over $600 generates such a report.

There is no need for the IRS to have that much access to account information. They should be analyzing and auditing the major players in the financial world. They have nearly unlimited power now to audit you and demand you accept their findings. It is easier to harass the little people who will not hire a tax attorney to fight them. I don't think that Biden has good intentions with this part of his terrible bill.

BigBob

twosie - I fully agree with you regarding the $600 reporting requerment. BTW is that "law"yet?

However the fool lied when he gave a fake timeline and that is what I addressee and no matter how you fools try to spin it his purchase did NOT take place the day before the President signed off on EV's. If you have ANY proof of your "did she know" by all means provide it. Otherwise you're lying.

Yesman123

Sorry it was in December a month before. That makes it so much better.

Yesman123

Anddd you made -dollars off the deal. Clown.

X Ray

From Yahoo Finance:

When in doubt, pick the same stocks that lawmakers' spouses are buying? That's what retail investors are doing when it comes to trades made by House Speaker Nancy Pelosi's husband, Paul Pelosi, a businessman who owns a real estate and venture capital firm.

Though Nancy Pelosi herself doesn't trade stocks, her husband does. And that's enough for some social traders, who see his trades as hers. "We've been tracking their performance and every single stock she has bought in the last two years has gone up significantly,"

"The reason why Speaker Pelosi became so popular was because every trade she was making inevitably turned out to be such a long-term winner," said Josephs.

"Albeit the entire market has gone up significantly, but these are very, very risky bets because she's been buying LEAP options as opposed to just stock," added Josephs.

"It started early in 2020 with Crowdstrike (CRWD), and then she bought Tesla (TSLA), and there were some laws passed pro for the EV market."

"Then she bought Google (GOOG, GOOGL) and then the laws came out that they weren't going to go after Big Tech. And then she just recently bought Nvidia (NVDA)."

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