Biden Administration wants the IRS to Monitor Your Bank Account





10/14/21



The Facts: As of the above date, the Biden Administration still stands behind their plan for the IRS to monitor all bank accounts with a total balance of $600 or any transaction of $600 or more.


Obviously, this would encompass almost all bank accounts, including little Tommy and his lawn mowing savings account, mom’s grocery buying account and Bob’s savings account for his nephews’ college. At this point the administration claims that the reason for this massive banking and privacy intrusion is to "Catch all the Rich Tax Cheaters". But then why look at everything of $600 and more?


Under this proposal, all money would be tracked and according to the latest information, it would be reported on some type of form which you and the IRS would receive from your bank or other financial institution. What they don’t explain is how the average taxpayer will justify the money that is reported and explain to the IRS that it is not from some nefarious off the books business. The burden of proof would fall to the taxpayer, which it almost always does when it comes to an IRS audit.


Most banking institutions and financial businesses have come out against this plan because of the astronomical cost to track and report all these transactions. Many small banks and credit unions have voiced their fear they will go under due to the loss of accounts. However, the Biden Administration is going ahead with it and Speaker of the House, Nancy Pelosi is endorsing some version of it to be a part of the federal spending package.


Our Opinion: This is a clear violation of the 4th Amendment to the US Constitution, under Illegal Search and Seizure. We believe the people who will be harmed the most from this legislation will be the low to middle income taxpayer. If the Biden Administration truly wanted to go after the rich, they would look at other tax law changes.


Almost all financial institutions who have commented about this have said they will have to raise their fees to compensate for the expense of tracking all this money. That translates to you and I, paying more for our banking. A lot more!


This law will do exactly what the IRS has always fought. It will force people to close their bank accounts and go to a cash and barter system for everyday expenditures. Thus creating a massive black market economy and actually lowering the amount of tax collections garnered.


If you look back at tax legislation and the history of tax collections, the amount brought in by the IRS and various state taxing agencies always grows when taxes are cut, and always shrinks when draconian tax laws like this are instituted.


Summary: This is BAD TAX LAW! Bad for the US taxpayer, bad for the economy and unconstitutional.