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el midgetron

Yellen, IRS Push Democrats to Require Banks to Report Taxpayers’ Annual Account Flows

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el midgetron
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Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig pressed lawmakers Wednesday to give the Internal Revenue Service more information about taxpayers’ bank accounts, as the Biden administration tries to salvage its struggling tax-compliance proposal.

In letters to lawmakers, the administration officials again asked Congress to require banks to report annual inflows and outflows from bank accounts with at least $600 or at least $600 worth of transactions, a proposal aimed at letting the IRS target its audits more effectively. It would generate about $460 billion over a decade to cover the costs of Democrats’ planned expansion of the social safety net and climate-change policies, according to the administration.

https://www.wsj.com/articles/yellen-irs-push-democrats-to-require-banks-to-report-annual-account-flows-11631727020

Not to disappoint the Breitbart fans -

https://www.breitbart.com/economy/2021/09/17/biden-administration-pushes-congress-to-require-banks-to-turn-account-info-over-to-irs/

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Tatetopa

I am not clear on how it would generate that much money.  Tax auditing to find fraud?

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el midgetron

Yes apparently,

a proposal aimed at letting the IRS target its audits more effectively”

Not sure if all the infractions they would look for would constitute fraud but yes thats basically correct. 

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Manwon Lender
5 hours ago, Tatetopa said:

I am not clear on how it would generate that much money.  Tax auditing to find fraud?

No actually they are monitoring all accounts to see if there are unusual money transfers and deposits both for Tax Evasion, fraud and for National Security concerns about Terrorism. All the information I pasted below was started in 2017 by the Trump Administration however, it was kept as quite as possible and the information was very difficult to find. But, Biden has expanded upon President Trumps Laws, and he also opened it all up and made everything public so that Americans would know what had and what is now going on, so there really isn't much that has changed in reality except that the entire program has come to light.

In the link I took the below information from it outlines everything that started in March 2017 minus a few tweaks Biden has added to the existing Laws. The Link is from the Criminal Investigation Enforced (treasury.gov 2017) so it has no bias added at all, its a great source! The tweaks Biden added are not designed to target the Poor or the Middle Class, its designed to pay strict attention to Business Owners, the Upper Middle Class, and the Rich. That's where the attention will be focused, because that's where 90% plus of the fraud and Tax Evasion occurs.  

Criminal Investigation Enforced Structuring Laws Primarily Against Legal Source Funds and Compromised the Rights of Some Individuals and Businesse.

""The Currency and Foreign Transactions Reporting Act of 1970,1 referred to as the Bank Secrecy Act (BSA), requires U.S. financial institutions to assist U.S. Government agencies by filing reports concerning currency transactions that are used to detect and prevent money laundering.2 It requires U.S. financial institutions to file reports, known as Currency Transaction Reports (CTRs), when currency transactions exceed $10,000 or multiple currency transactions aggregate over $10,000 in a single day. The reports are deemed useful in criminal, tax, terrorism, and other investigations.3 The BSA also requires U.S. financial institutions to file reports, known as Suspicious Activity Reports, of suspicious activity that might signify money laundering, tax evasion, or other criminal activities.""

""Title 31 of United States Code (U.S.C.) Section (§) 5324(a) states that “no person shall, for the purpose of evading the reporting requirements … (1) cause or attempt to cause a domestic financial institution to fail to file a report required [CTRs]; (2) cause or attempt to cause a domestic financial institution to file a report … that contains a material omission or misstatement of fact; or (3) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions.” Structuring can take two basic forms.""

""First, a customer might deposit currency on multiple days in amounts under $10,000 (e.g., $9,900) for the intended purpose of circumventing a financial institution’s obligation to report any cash deposit over $10,000 on a CTR. Although such deposits do not require aggregation for currency transaction reporting because they occur on different business days, they nonetheless meet the definition of structuring under the BSA implementing regulations."

""Second, a customer or customers may engage in multiple transactions during one day, or over a period of several days or more, in one or more branches of a bank or credit union, in a manner intended to circumvent the currency transaction reporting requirement. While structuring may be indicative of underlying criminal activity, structuring itself is unlawful under the BSA. Whoever violates the structuring law may be fined, imprisoned, or both.4 Any property involved in a violation of § 5324 may be seized and forfeited.5 Federal Rules of Criminal Procedure Rule 416 states that probable cause is required for issuing a warrant to seize property. The burden of proof in a civil forfeiture action is on the Government to establish, by preponderance of the evidence, that the property is subject to forfeiture. Preponderance of the evidence means that there is a greater weight of evidence, on balance, as to an allegation, than that is offered in opposition to it, i.e., greater than 50 percent of the evidence points to a violation of § 5324.""

""To prove a structuring violation, the Government must establish three elements—that a person has:""

""(1) engaged in acts of structuring;""

""(2) knowledge that the financial institutions involved were legally obligated to report currency transactions in excess of $10,000;""

""(3) To see who acted with the intent to evade this reporting requirement.""

""Proof of willfulness and that the person was aware that structuring is illegal are not required.8 In January 1994, the Supreme Court ruled that the Government had to prove that an account holder was aware that structuring was unlawful and intentionally violated the law.9 In reaction to the Supreme Court’s decision, Congress removed the term “willfully” from 31 U.S.C. § 5324. In addition, current law does not require that the funds have an illegal source (e.g., money laundering or other criminal activity).""

""The history of the BSA requirements are e long and complex, but the purpose of the BSA reporting requirements is focused on detecting and deterring criminal behavior. In other words, the BSA reporting requirements were not put in place just so that the Government could enforce the reporting requirements.10 They were put in place to give the Government tools to address criminal behavior. Criminal Investigation’s (CI) procedures confirm that the intent of the Internal Revenue Service’s (IRS) seizure and forfeiture program is to pursue illegal activities: The Criminal Investigation (CI) Asset Seizure and Forfeiture Program utilizes CI’s seizure and forfeiture authority as an investigative tool and/or to disrupt and dismantle criminal enterprises.""

""The program seeks to deprive criminals of property used in, or acquired through, illegal activities by directing CI’s financial expertise and resources towards significant seizure and forfeiture investigations in which CI can take a leading or key role.""

Criminal Investigation Enforced (treasury.gov)

Edited by Manwon Lender
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Sir Wearer of Hats
4 hours ago, el midgetron said:

Yes apparently,

a proposal aimed at letting the IRS target its audits more effectively”

Not sure if all the infractions they would look for would constitute fraud but yes thats basically correct. 

Shall we play “guess who is going to be target number 45”?

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Manwon Lender
8 minutes ago, Sir Wearer of Hats said:

Shall we play “guess who is going to be target number 45”?

You hit the nail with a pile driver, and why not he is already under investigation for fraud and Tax evasion and things are not going his way at all right now!!:yes:

Edited by Manwon Lender
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F3SS
5 hours ago, Manwon Lender said:

the link I took the below information from it outlines everything that started in March 2017 minus a few tweaks

So is the tweak refocusing on $600 transactions instead of 10k? That's the big thing raising eyebrows and that would affect the poor and middle class. Back when Obamacare was being hashed out by the 3 people who actually read it before passing it there was an unrelated bs clause that wanted to make law that every $600 one spends in one place or with one person had to involve a Form 1099. Spent 600 at a restaurant through the year, 1099 em. Bought an appliance, 1099 the store. 1099 the place you bought your puppy from, your furniture. It was struck thankfully. This new thing is quite as pesky as that but they need to stay the hell out of our bank accounts and our cashapp accounts. All this would do is compel more cash to be stashed under mattresses. 

Edited by F3SS
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DieChecker

Iikely they'll do a surcharge if you go past so many transactions, and over so much money. Just a little tax.... You won't even know you're losing money...

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Manwon Lender
9 hours ago, F3SS said:

So is the tweak refocusing on $600 transactions instead of 10k? That's the big thing raising eyebrows and that would affect the poor and middle class. Back when Obamacare was being hashed out by the 3 people who actually read it before passing it there was an unrelated bs clause that wanted to make law that every $600 one spends in one place or with one person had to involve a Form 1099. Spent 600 at a restaurant through the year, 1099 em. Bought an appliance, 1099 the store. 1099 the place you bought your puppy from, your furniture. It was struck thankfully. This new thing is quite as pesky as that but they need to stay the hell out of our bank accounts and our cashapp accounts. All this would do is compel more cash to be stashed under mattresses. 

I understand your concern about the $600 and the 1099em IRS form, but here again the media is making an issue political and not reporting the facts accurately. The 1099em form is not for average Tax payers, it is for use by those that are contractors and the self employed. Below is a full example of the purpose of the 1099 IRS forms, you see for the self employed and contractors the 1099em replaces the W-2 forms that 90% plus of Americans use to file their taxes. So your concerns about the 1099 IRS Forms and the $600 reporting requirements have no effect on the Poor or the Middle Class unless they are self employed or they are working in the compacity of a independent contractor. Again this is just another issue where political forces are trying to instigate and divide our people even more than they actually are, and this crap is getting really old!:td:

""What is a 1099 employee? They are self-employed workers, also called independent contractors. Form 1099 reports the income that independent contractors receive throughout the year to the IRS for tax purposes. This form replaces the need for a W-2 and indicates that they are not an employee, no employer is responsible for paying FICA taxes or withholding income tax, and the independent contractor is responsible for paying Self-Employment Taxes.""

""Common Types of 1099 Employees""

""1099 “employees” are generally individuals who are in an independent trade, business, or profession in which they offer their services to the general public (not just a single customer or employer), including:""

Doctors

Dentists

Veterinarians

Real Estate Agents

Lawyers

Accountants

Contractors

""The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.” – IRS.gov, Independent Contractor Defined""

The link below explains this in much greater detail, if anyone is interested  https://employersresource.com/business-compliance/what-is-a-1099-employee/

The Case for a Robust Attack on the Tax Gap, 

""A well-functioning tax system requires that everyone pays the taxes they owe. Today, the “tax gap”—the difference between taxes that are owed and collected—totals around $600 billion annually and will mean approximately $7 trillion of lost tax revenue over the next decade. The sheer magnitude of lost revenue is striking: it is equal to 3 percent of GDP, or all the income taxes paid by the lowest earning 90 percent of taxpayers.""

""The tax gap can be a major source of inequity. Today’s tax code contains two sets of rules: one for regular wage and salary workers who report virtually all the income they earn; and another for wealthy taxpayers, who are often able to avoid a large share of the taxes they owe. As Table 1 demonstrates, estimates from academic researchers suggest that more than $160 billion lost annually is from taxes that top 1 percent choose not to pay.""

"The Administration’s proposals call for significantly increasing the IRS budget, specifically $80 billion of investment over the coming ten years in enforcement, IT, and taxpayer services generating an estimated $320 billion in additional tax collections over the next ten years. To further ensure that everyone pays their fair share, the Administration also calls for using information that financial institutions already possess—without imposing any burden on taxpayers whatsoever—so the IRS can deploy these additional resources to audit more sophisticated tax evaders. These changes to the third-party information reports are estimated to generate $460 billion over a decade." 

The link below explains what I have cut and pasted above: The information above is directly from the IRS in the document below dated 7 September 2021. The intent of the new tax requirements are obvious, the Federal Government is trying to ensure that those as they put it 90% of the tax payers can no longer get away with not paying their fare share of taxes, it's clear that the average 80% of Americans will not be effected by the changes unless they fall into one of categories presented above in the section that talks about the use of the 1099 IRS Firms.

https://home.treasury.gov/news/featured-stories/the-case-for-a-robust-attack-on-the-tax-gap

 

Hope this helps my friend, I really don't think there is anything to worry about unless you fall into the categories above.:tu:

Edited by Manwon Lender

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F3SS
2 hours ago, Manwon Lender said:

Hope this helps my friend, I really don't think there is anything to worry about unless you fall into the categories ab

I definitely do fall into one. I run my business on the up and up but on the personal side I spend and move $600+ around all the time and I don't want to be hassled about that so I hope that's not the case. 

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Manwon Lender
46 minutes ago, F3SS said:

I definitely do fall into one. I run my business on the up and up but on the personal side I spend and move $600+ around all the time and I don't want to be hassled about that so I hope that's not the case. 

I also feel into that category when .i was working as a US Contractor in the Middle East, but I was lucky because since .i was working in Danger Zone for the US War Effort, the first $100,000 of my salary was none taxable. Yea I hope you don't have any problems either, but at least the fake news that all US Tax payers are being targeted is nothing political maneuvering that is being pushed by our corrupt media sources.

Take Care.  

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Sir Wearer of Hats
7 hours ago, Manwon Lender said:

I also feel into that category when .i was working as a US Contractor in the Middle East, but I was lucky because since .i was working in Danger Zone for the US War Effort, the first $100,000 of my salary was none taxable. Yea I hope you don't have any problems either, but at least the fake news that all US Tax payers are being targeted is nothing political maneuvering that is being pushed by our corrupt media sources.

Take Care.  

23594E49-4AF4-4768-8694-100914359796.jpeg.110395d7369cd374ed01293b30beb469.jpeg

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Manwon Lender
1 hour ago, Sir Wearer of Hats said:

23594E49-4AF4-4768-8694-100914359796.jpeg.110395d7369cd374ed01293b30beb469.jpeg

Thanks for the laugh!:lol:

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