Joe Biden and his administration are pressuring lawmakers to enact a plan requiring banks to turn over to the Internal Revenue Service detailed information about inflows and outflows of almost all American bank accounts, according to the Wall Street Journal.
Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig sent letters to lawmakers this week asking Congress to include in tax hike legislation a requirement that banks report annual transaction data on accounts with $600 or more or that have $600 worth of transactions over the year. The aim is to help the I.R.S. collect taxes from individuals and businesses on unreported income and to create more leads for audits.
The Biden administration claims the additional information would result in the IRS collecting an additional $460 billion over a decade. It needs that revenue to offset its massive spending and Green New Deal socialism schemes.
“Wage and salary income is reported to the IRS on W-2 reports, and tax obligations are automatically withheld, so compliance rates stand at 99 percent,” Yellen wrote. “It is clear that when taxpayers know that this information exchange exists, their voluntary compliance rises.”
Financial institutions say it would impose a costly compliance burden that would be especially difficult to manage for smaller banks and credit unions. More concerningly, the proposal would create a centralized database of nearly all Americans’ bank accounts, loans, and investment accounts—a likely target for hackers and spies.