The Democrats may have pushed the narrative that getting the vaccine matters. In fact, it has summed up the entire Democratic party. But while they continue to push fear and hysteria around the COVID-19 vaccine, it appears the Biden administration is hoping to beef up the control the Internal Revenue Service has over taxpayers by requiring bank account reporting.
Drawing quick backlash from the Republicans, the Democrats tried to sneak the reporting requirements into the tax and spending bill President Joe Biden has been parading around Washington. According to the GOP, by allowing the IRS bank account information, the customers’ privacy is at risk.
Sending out a memo, hoping to push the measurements through, the Democrats wrote, “Imagine a taxpayer who reports $10,000 of income; but has $1 million of flows in and out of their bank account. Having this summary information will help flag for the IRS when high-income people under-report their income (and under-pay their tax obligations).”
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Even Treasury Secretary Janet Yellen is promoting the new requirements, supposedly urging the spending package to also include the full proposal. She sees it as a way of catching those trying to escape from paying taxes. “As you consider specific policy choices in designing an information reporting regime, it is important to ensure that the reporting regime is sufficiently comprehensive so that tax evaders are not able to structure financial accounts to avoid it. Any suggestion that instead this reporting regime will be used to target enforcement efforts on ordinary Americans is wholly misguided.”
While the Democrats praise it, the GOP is wary, again claiming that by giving the IRS access to a household’s bank account, they are becoming susceptible to cyber attacks. Not to mention, the IRS could also audit whoever they like with such information for political reasons.
Still, the White House said, “Fundamentally, this proposal is about ensuring that those at the top pay what they owe. The audit rate guardrails are key to the proposal and will protect working people.”
This piece was written by Jeremy Porter on September 18, 2021. It originally appeared in RedVoiceMedia.com and is used by permission.
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