Democrats ‘Reach Agreement’ to Raise $600 Cap on Biden’s Proposal on IRS Reporting and Surveillance

Democrats have said they plan to raise the threshold of President Joe Biden’s radical proposal that all bank transactions of more than $600 be reported to the Internal Revenue Service (IRS). The initial proposal (pdf)—which Biden says is aimed at curbing tax evasion—would require banks and other financial institutions to report to the IRS any deposits or withdrawals totaling more than $600 annually to or from all business and personal accounts. The new reporting requirement would take effect in 2022 and would apply to both private individual and commercial business accounts owned by a taxpayer. But House Ways and Means Chairman Richard Neal said Thursday that he and other Democratic leaders are planning to scrap the $600 annual figure and set a higher threshold, of which the details are still being worked through. “We’ve reached an agreement to not have the $600,” Neal told Bloomberg. A Democratic aide noted that they are focusing on increasing the current threshold to $10,000 …Read More

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