The goal of monitoring bank accounts for over $600 dollars in activity is to try to catch the wealthy not paying their fair share in taxes, but experts say that isn’t what will happen.
The proposal, if passed, would require banks to submit data of any bank accounts with activity over $600 and the IRS would then find differences between declared income and bank deposits.
The Biden administration claims this is to target the wealthy, but experts say it’s very clearly targeting small businesses and the regular everyday American that isn’t wealthy.
The most impacted will be businesses that have high cash flow like restaurants, bars, and small grocery stores.
People impacted will be those normally paid under the table like nannies or servers.
The Biden administration still says that even though it’s illegal for them to conceal their income, they still aren’t the target. Those earning $400,000 or more are the intended target.
Data shows that big corporations who aren’t paying taxes are using tax cuts and loopholes to avoid taxes, not concealing their income in increments of $600 in bank accounts.
Many lawmakers, taxpayers, and banks express anxiety over privacy issues even though the IRS says they will not have access to any information other than dollar amount.
The other question raised is how the IRS will even handle the additional data when they’re already backlogged with tax returns.
The IRS has been hacked multiple times as well, and will now be forced to protect millions of Americans banking data on top of everything else.
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