The IRS could have all your banking information if a new law passes through Congress

October 6 – How would you like the IRS to know every transaction you make in your checking account in a year’s time?

If a shudder just shimmied up your spine, you’re not alone.

Janet Yellen, the secretary of the treasury, and the IRS commissioner, want a new law passed by Congress that would force banks to turn over all information on every account with more than $600 or with at least $600 worth of transactions during the calendar year.

They’re doing it under the guise that they want to have stricter enforcement for people that are evading tax reporting.

Attorney Clint Barkdoll, Pat Ryan and Michele Jansen took a look at the latest out of the IRS this morning during the Big Talk on First News.

Barkdoll said, “Obviously there’s a lot of concerns about this because this would be a wholesale turning over of your account information to the IRS every year. It would show all transactions, all deposits, the sources of those deposits, everything that goes back out.”

Yellen and the IRS commissioner were again pushing for this yesterday.

Barkdoll said, “I really hope that common sense prevails here from our Representatives and our Senators that there is no way this thing should become law.”

Jansen said, “There’s two issues here. One is first of all, this would be very very difficult especially for the smaller banks to comply with. It would cost them a fortune to have to monitor all these accounts for that small of a transaction. I’m stunned when I look at a usatoday.com story on this. A so-called fact check. I am so sick of no journalism left in this country whatsoever. They’re saying it’s partially false and when you do that, if you say something’s partially false, you immediately dismiss people’s concerns about it. Unbelievably what they’re going after as partially false is the treasury cannot declare any changes to the law. It is a legislative power that belongs to Congress. Yes, you morons, it’s part of this legislative package. They’re actually criticizing anybody talking about this saying this is not set in stone, it’s only proposed. Congress has to do it. The treasury cannot do it. There’s nothing fact checking in that statement at all. It is in proposed legislation. And yet that’s what they’re trying to focus on to make people not pay attention to the story.”

Barkdoll said, “Right. Good point. Again, I think this $600 is such a low threshold because even someone that routinely carries a small balance of say a few hundred dollars, over the course of 12 months, they’re certainly going to have $600 worth of transactions in and out of their bank account. That’s only $50 a month and effectively this would require banks, big and small, to just turn all of that data over to the IRS at the end of each year and then it’s not clear what the IRS does. Certainly they’re going to have some kind of a software program that’s going to mine all of that data and then presumably try to match up what you’re reporting on your tax return to see if there’s anything that’s not being reported. This would be the largest dragnet in the history of the IRS, I think, in as much that they would essentially be privy now to everybody’s bank account in the United States.”

Jansen said, “And that’s the danger right there. They’re actually going to be monitoring it. Believe it or not, the other part of this fact checking is and it doesn’t give them access to individual transactions and your bank account. It just monitors all the flow in and out. Oh my goodness. To try to pretend like that’s not something so unbelievably alarming. That they will be following all of your transactions in your bank accounts. And talk about the fortune that will be spent on IRS agents then pouring over this.”

“That you’re paying for,” Ryan pointed out.

Jansen said, “This is just an insane waste of money by both private companies that will be forced to comply. The smaller banks, especially, but all banks. And the IRS and all the money we have to dump into this.”

Ryan said, “You’ve got to call your Senators. It doesn’t matter what Senator. It doesn’t matter Maryland, Virginia, West Virginia, Pennsylvania. You’ve got to get on the horn with them. I know there’s a fight being pushed back here. We’re seeing that, but it’s got to be loud from America. We’re in these moments. We’re in the how did we get there moment. This is it right now.”

Jansen said, “And people will be pulling their money out of banks. Banks will lose business. You cannot monitor me, government. You do not have this kind of authority to watch over my life. There will be a lot of people looking for other ways to deal with their money than putting it in the bank.”

Barkdoll said, “The one silver lining on this so far is there appear to be bipartisan opposition to this. You saw some Democrats come out yesterday expressing concerns that this is unfairly targeting low income people. That those are not groups that should be targeted for this level of scrutiny. Republicans, of course, are saying it’s just not fair in general to anyone of any income that you should have to share all of your private banking information to the IRS at the end of each year. They’ve not voted on this, but it’s interesting that Yellen and the IRS commissioner are really pushing it on behalf of the Biden administration. Hopefully the votes are not in the Congress to get this thing to the finish line.”