Biden tax plan

IRS monitoring anything over $600? Thanks, Joe. More shit the poors can deal with.

Details please. I know if I go to a casino of horse track and hit for anything over $600 I have to fill out a W-2G

kingstonlake wrote:Details please. I know if I go to a casino of horse track and hit for anything over $600 I have to fill out a W-2G

and now your bank will have to report it if you deposit it into an account

Jake from State Farm wrote:

kingstonlake wrote:Details please. I know if I go to a casino of horse track and hit for anything over $600 I have to fill out a W-2G

and now your bank will have to report it if you deposit it into an account

Seems redundant

kingstonlake wrote:

Jake from State Farm wrote:

and now your bank will have to report it if you deposit it into an account

Seems redundant

They're looking for untaxed income. So it sounds like banks and credit unions are basically going to be required to send your account statement to the IRS monthly or annually. Why go after the people where it's really a problem, such as rich people with offshore accounts or the means to be able to hide income, when you can go after the little people who don't have the time and money to fight the IRS?

Jake nailed it, the IRS should be focusing their time and efforts thwarting the wealthy's tax avoidance.

Cameron wrote:Jake nailed it, the IRS should be focusing their time and efforts thwarting the wealthy's tax avoidance.

While I agree, I see this as an additional algorithmic way to unearth the avoidance without having to replace all the auditors that Trump got rid of because he hated the IRS.

Fact is, they need to replace those people anyway.

Also, the ultra rich are going find new ways to hide their money.

Jake from State Farm wrote:

kingstonlake wrote:Details please. I know if I go to a casino of horse track and hit for anything over $600 I have to fill out a W-2G

and now your bank will have to report it if you deposit it into an account

So, if I deposit a grand in my poker winnings they will know it’s not income taxed and tax me? WTF? Is that possible?

DWags wrote:

Jake from State Farm wrote:

and now your bank will have to report it if you deposit it into an account

So, if I deposit a grand in my poker winnings they will know it’s not income taxed and tax me? WTF? Is that possible?

No silly, first they audit you under bright lights.

https://www.americanprogress.org/issues/economy/news/2021/09/14/503821/bank-tax-reporting-critical-component-bidens-build-back-better-agenda/

kingstonlake wrote:https://www.americanprogress.org/issues/economy/news/2021/09/14/503821/bank-tax-reporting-critical-component-bidens-build-back-better-agenda/

Thanks. It sounds like I had the banking industry's version of the story.

Jake from State Farm wrote:

kingstonlake wrote:https://www.americanprogress.org/issues/economy/news/2021/09/14/503821/bank-tax-reporting-critical-component-bidens-build-back-better-agenda/

Thanks. It sounds like I had the banking industry's version of the story.

Honestly I don’t know what to make of it.

What is the point of reporting inflow and outflow yearly? I’m assuming it has to match your reported income. But why report outflow?

Cameron wrote:Jake nailed it, the IRS should be focusing their time and efforts thwarting the wealthy's tax avoidance.

Interesting thing and it’s touched on a little bit this goes way way before trump- the republicans have been cutting IRS funding for decades, very intentionally and nefariously, to a point where they cannot focus on rich people, it takes more resources than they have. You’re significantly more likely to get audited if you make less than 25,000 than if you make more than 25,000,000 because they have the time to look at simple situations, they can’t police the complex ones. One of the many many many things that democrats should be doing right now is massively increasing IRS funding.

There are a number of articles out there on this, but here’s one

https://www.google.com/amp/s/www.gq.com/story/no-irs-audits-for-the-rich/amp

DWags wrote:What is the point of reporting inflow and outflow yearly? I’m assuming it has to match your reported income. But why report outflow?

From the article:
Currently, much business income is entirely invisible to the IRS. Requiring financial institutions to provide basic information on accounts would greatly help the agency spot indications of cheating. To illustrate the value of the proposal, consider the following situations:

A partnership has millions of dollars flowing into a bank account, but the IRS receives no partnership tax return.
A person’s business bank account has large amounts of money flowing in, but they report only modest gross income on Schedule C.
A business owner reports large levels of deductions, but their bank account shows minimal outflows.