By Ann Brown
Earlier this month, President Joe Biden received major backlash when he proposed fighting tax fraud by allowing the Internal Revenue Service to access customer accounts with total annual deposits or withdrawals of more than $600.
The effort was part of Biden’s massive $3.5-trillion Build Back Better infrastructure bill.
Republican lawmakers and banking industry representatives are among those who went nuts, saying the tax enforcement plan, if implemented, would represent an invasion of privacy by the federal government.
Now the White House has backed off, saying it has changed the number from $600 to $10,000. Banks will still be required to provide information to help the IRS find tax cheats more easily, but the target has changed.
Democrats want banks, other financial institutions, and peer-to-peer services such as Venmo to report annual totals of account inflows and outflows to the Internal Revenue Service, The Wall Street Journal reported.
Biden and Senate Democrats propose raising the threshold to accounts with more than $10,000 in annual transactions. Also, income from paychecks where federal taxes are automatically deducted will not be subject to the reporting. Recipients of federal benefits such as unemployment and Social Security would also be exempt, Click here to read entire article