Proposal: If a bank account has more than $600.00, report its activity to the government

| September 13, 2021

This is the intent of a proposal by the Treasury Department during the spring. Congress is looking to find additional funding sources to pay for the costs of programs that they want to implement. If only they could see cash and other transactions from and to business and personal bank accounts, they could come up with a better way to measure how much tax the tax payer should pay.

From the Treasury Department document:

This proposal would create a comprehensive financial account information reporting regime. Financial 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,2 with the exception of accounts below a low de minimis gross flow threshold of $600 or fair market value of $600.

Other accounts with characteristics similar to financial institution accounts will be covered under this information reporting regime. In particular, payment settlement entities would collect Taxpayer Identification Numbers (TINs) and file a revised Form 1099-K expanded to all payee accounts (subject to the same de minimis threshold), reporting not only gross receipts but also gross purchases, physical cash, as well as payments to and from foreign accounts, and transfer inflows and outflows.

Similar reporting requirements would apply to crypto asset exchanges and custodians.

Separately, reporting requirements would apply in cases in which taxpayers buy crypto assets from one broker and then transfer the crypto assets to another broker, and businesses that receive crypto assets in transactions with a fair market value of more than $10,000 would have to report such transactions.

The Secretary would be given broad authority to issue regulations necessary to implement this proposal.

The proposal would be effective for tax years beginning after December 31, 2022.

This proposal may have been published earlier this year; however, some Democrats still consider this a good idea. The entire document is available here.

Category: "Teh Stoopid", "The Floggings Will Continue Until Morale Improves", Politics

Comments (42)

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  1. Mason says:

    Good thing I’ve never got more than $600 in the bank! Victory is mine.

    • President Elect Toxic Deplorable Racist SAH Neanderthal B Woodman Domestic Violent Extremist SuperStraight says:

      I’m just the opposite. Like a good and thrifty lad (snicker!), I’ve saved my pennies “just in case”, so I can continue to pay my bills and debts. I have quite a collection of pennies. I guess I’d best be prepared to withdraw my pennies. I wonder if my company (any company) would be able to go back to the bad old days of “pay envelopes”? Maybe on a daily basis to get below the $600 (so far) limit?

  2. Berliner says:

    Wonder if there will be an exemption from taxation if one were to say they were saving up to purchase “art” being auctioned on behalf of an “allegedly former” crack-head. Asking for Комиссар.

  3. President Elect Toxic Deplorable Racist SAH Neanderthal B Woodman Domestic Violent Extremist SuperStraight says:

    Didn’t we start a war for independence over less onerous taxation crap then this?

    • SFC D says:

      That’s what I was taught in school, but what can you expect from a white, patriarchal, non-woke, non-CRT teaching, racist, sexist, predominantly Christian rural Idaho school system?

      • KoB says:

        The Tree is crying out for a good watering!

        And like Tox and ‘beans, I have coin of the realm sitting in bank (Credit Union) accounts. And yes, those accounts have more than $600.00 in them. If they tracked my expenditures they would find that I buy groceries, pay utility bills, insurance, and tax bills. Under these proposals, how much good would it do to transfer the direct deposits that are made from IRA and SS payments dropped in there every month to cash for the mason jar or mattress? As commented below, what’s next, mattress inspectors? Store required to report the sale of mason jars?

        The Black Flag is raised, the knives are sharp and I have rope.

        • rgr769 says:

          Well, maybe they could repurpose some Fan Belt Inspectors to become mattress inspectors, cuz they certainly didn’t need 13 to investigate Bubba’s “noose.”

        • 26Limabeans says:

          One of the things about direct deposit is that when you sign up you
          agree to allow them to take back “erroneous” deposits.
          And they do when for example a person dies and nobody notices until
          a few deposits later.

          SS will pay by check if you request. Then cash it at a gas station
          convenience store. You can bet that’s how a certain type of recipient
          does it and not for the convenience.

        • The Stranger says:

          You forgot the most important transaction…the purchase of cold Yuengling!

          • KoB says:

            That line item is under “groceries” Pappy.

            You think WW grins when we have a trifecta of DRTs on the FGS? You oughta see the Beer Rep’s when I see him in the cooler aisle.

  4. STSC(SW/SS) says:

    OK Senator/Congressman when in office we want to see every financial transaction you do down to the penny including campaign money.

    Failure to report a transaction will result in a $100,000 fine for each offense.

  5. Hate_me says:

    My mattress is about to get a lot bigger.

  6. OWB says:

    So we’re going back to keeping cash in mason jars buried in the back yard???

  7. 26Limabeans says:

    My substantial savings account is presently earning 0.30% interest.
    Just sitting there it is losing value due to inflation.
    Time to take it all out in C-notes and stuff the mattress.
    Lots of cash bargains out there lately.

    Next up? State mandated mattress inspections.

  8. Sapper3307 says:

    “Invest in lead!”
    Lars 2021

  9. 5JC says:

    When my father in law passed years ago he left three gun safes. Two were full of guns and one was full of money. Lots of money as well as gold and silver. He was born during the Great Depression and never did trust banks.

    He might have been on to something there.

  10. Claw says:

    Don’t see what the big deal is. All of us out there who are drawing a military retirement check and/or drawing Social Security and have them set up for direct deposits, Big Brother already has the account numbers. All it takes is one more key stroke by the paymaster to view the balance(s) come payday./smile

  11. Poetrooper says:

    As ol’ Poe has been saying on this forum for some time now, it’s your 401K and IRA retirement savings where the real pot of gold lies for for socialist government confiscators and redistributionists looking for ways to finance their cockamamie green schemes.

    And don’t be feeling too smug if you don’t have much in savings but do have a comfortable pension, because you’d better believe they’ll get around to heavily taxing pension incomes if we give them enough time in power.

    BTW, a $600 checking account balance is virtually 99.9% of all Checking accounts in America according to this 3 year old report:

    https://smartasset.com/checking-account/checking-account-average-balance

    What the Dems are proposing now is only the tip of the iceberg if they ever succeed in corrupting the election process to the extent that they don’t have to fear the voters and the possibility of being voted out of power.

    • Ex-PH2 says:

      Poe, the national debt right now is $28 trillion. And someone in Congress = don’t remember who — wants the Fed to put money into cryptocurrency.

  12. Milo Mindbender says:

    Sounds like it’s just about the price of a freedom seed dispenser, and not one bit of their business. If I take 600 out of my account,why should i be accountable to anyone not in my finances especially the infernal revenue service. These sunshine laws are pure Bandini, and shouldn’t live long enough to be printed let alone voted on.

  13. 26Limabeans says:

    Back in the 60’s I worked for a company that paid in cash.
    Every Friday the Brinks truck would pull up and set up a table
    right on the production floor. Armed guard both ends of the table.

    • rgr769 says:

      In the 1960’s, all Army units were paid in cash, once a month. Being Company Pay Officer was a pain in the butt. I found a counterfeit $20 bill in my payroll once. Boy did that create some headaches; I had to be interviewed by CID and give a sworn statement.

  14. Blaster says:

    All of the modern conciseness are going to be taboo if the government keeps using them against those that utilize those concisenesses.

    Are there ANY liberals or independents that voted for this train wreck that have any remorse?

    It’s only been 8 months. I’m not sure that we will make to the midterms.

  15. That couldn’t have been me 26Lima, I started there in June of 1970 so I guess I missed you.

  16. E4 Mafia '83-'87 says:

    The sound you here in the distance is The Founding Fathers spinning in their graves. You think if we got in The Way-back Machine with Mr. Peabody & Sherman and stopped in the late 18th Century that Jefferson, Adams, Franklin, and Hamilton would agree with tremendous overreach the Federal Government is planning? They could have cut themselves the sweetest deals, but they chose to limit the reach of authority to ensure personal freedoms.

  17. NHSparky says:

    To say nothing of those of us who get per diem and vehicle reimbursement via DD.

    First time they try to claim it as income is when I refuse to participate in DD any longer.

    Back to cash and money orders paying all my bills.

  18. Poetrooper says:

    One thing you CAN take to the bank is that if such legislation is passed, Congress will exclude its members from being subject to it…

  19. Ex-PH2 says:

    The other day, I watched a video of someone from Stansberry Report interviewing David Morgan, who runs the “Morgan Report”.

    He said two things that stuck out:

    1 – banks may decide to simply seize any balance OVER $250,000 with NO NOTICE to the account holder. This allows the banks to engage in a bail-in (as opposed to a bail-out) — basically, maintain liquidity.

    2 – Morgan also said a crash is definitely coming, so act accordingly. A couple of other financial analysts have said the same thing.

    I will try to find that video and link to it for all of you.

    No, I don’t trust banks any more than any of you do. The reason banks closed during the runs for cash on banks when the financial system collapsed was that the Federal Reserve could not get cash to the banks quickly enough to meet the demand by account holders who wanted to withdraw their funds. Some closed their doors permanently and people lost everything = and I mean EVERYTHING.

    It would not be the first time banks closed. Andrew Jackson closed the National Bank and distributed the funds to “pet” banks, the local banks. Read up on that event.

  20. ChipNASA says:

    “ ‘F**K Joe Biden’ Chants Break Out at College Football Games Across the Country“
    https://www.google.com/amp/s/www.newsweek.com/joe-biden-chants-break-college-football-games-country-1626438%3famp=1

  21. Anonymous says:

    Cash and carry.

  22. Poetrooper says:

    Ol’ Poe says, “Man, I simply cannot believe I went out there drunk as a billy goat to all those damned casinos and lost that much money…”

    Who’da thunk I could be that stupid, hmm? 😜😜😜

  23. OWB says:

    Maybe the option is for us all to become members of Congress so we are exempt from all this foolishness? Now THAT’s a jolly thought! TAH controlling
    legislation? Wow, what a nightmare, for somebody.