Anyone heard of Bidens proposal for community banks?

[Chewie]

My wife just read about Bidens proposal for Community Banks, etc being required to report all transactions over $600 to the IRS. There were links but neither of us click on them just because.

 

[fullmetaljesus]

Sounds like a good way to bring cash transactions back.

 

[phylodog]

Sounds like a good way to bring cash transactions back.

Real fast

 

[fullmetaljesus]

So is this the time to keep cash in a safe and transfer money typically in a bank to a money market account or something similar removing the banks?

 

[d.kaufman]

It's all banks and it's all withdrawals and deposits where the account has a balance of $600 or more

Here's a tidbit from one article

"Currently, banks are only required to report deposits of $10,000 or more, however, the proposal would require banks and other financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts with a balance of more than $600."

Link to article

Biden proposal would give the IRS access to your bank account - The Sentinel

The Biden buget proposal includes a provision that requires banks to report your banking transactions to the Internal Revenue Service.

sentinelksmo.org

 

[ancjr]

.....

 

[Cameramonkey]

and as somebody posted somewhere, imagine the paper filers that get a tax refund check. So you get a tax refund for $5,000. You dutifully deposit it into your checking account.

Now you have to prove to the IRS that the deposit (ironically, from them) wasnt income. WTF?

So I'm new to this. does the cash go IN the mattress, or between the mattress and box spring? (asking for a friend)

 

[ditcherman]

They’re keeping track and supposedly reporting all transactions over 10k right now. If your bank is suspicious of you, they are free to report any amount.
Requiring reporting of anything over $600 is a ridiculous burden on the banks.

Biden proposal would give the IRS access to your bank account - The Sentinel

The Biden buget proposal includes a provision that requires banks to report your banking transactions to the Internal Revenue Service.

sentinelksmo.org

ETA; ^the headline is clickbait but article is somewhat informative.

 

[Cameramonkey]

But wait, what do you have to hide, citizen? If you arent doing anything wrong, then you shouldnt have a problem with them peeking behind the curtain of your life...

 

[ditcherman]

and as somebody posted somewhere, imagine the paper filers that get a tax refund check. So you get a tax refund for $5,000. You dutifully deposit it into your checking account.

Now you have to prove to the IRS that the deposit (ironically, from them) wasnt income. WTF?

So I'm new to this. does the cash go IN the mattress, or between the mattress and box spring? (asking for a friend)

You don’t have to prove anything, this has been done for years, they are just lowering the limits over time. 600 is drastic. It’s a negotiating point, to show that they’re serious.

How do you even get cash? No one really deals in it. You have to go to the bank, and to get any significant amount, well, they’re already seeing that.

Also, I thought we thought cash wouldn’t be worth anything anyway here shortly.

I pretty much keep my cash in gen2 moe mags. Have a few gen3’s.

 

[Cameramonkey]

On a related note I wonder if this has any connection to Ebay's new policy. Before they would deposit your earnings into a paypal account. or a linked checking account. Your choice.

Well, until a month or two ago.

Now all proceeds MUST go into a linked checking account, and you must provide your SSN as a seller so they can 1099 you for your earnings. Before they only 1099'd for professional sellers. They didnt even follow the traditional $600(?) rule. They only reported for profits in excess of I think it was $10k. Now EVERYBODY gets a 1099. (I think) No more honor system, even if you are just getting rid of a few things cluttering your house.

 

[Cameramonkey]

You don’t have to prove anything, this has been done for years, they are just lowering the limits over time. 600 is drastic. It’s a negotiating point, to show that they’re serious.

How do you even get cash? No one really deals in it. You have to go to the bank, and to get any significant amount, well, they’re already seeing that.

Also, I thought we thought cash wouldn’t be worth anything anyway here shortly.

I pretty much keep my cash in gen2 moe mags. Have a few gen3’s.

You are thinking in today's logic. Under Biden's new rules, that $5k may get flagged and require proof its not profit. The ultimate goal is to remove all under the table profits so everything is subject to the king's cut.

 

[ditcherman]

On a related note I wonder if this has any connection to Ebay's new policy. Before they would deposit your earnings into a paypal account. or a linked checking account. Your choice.

Well, until a month or two ago.

Now all proceeds MUST go into a linked checking account, and you must provide your SSN as a seller so they can 1099 you for your earnings. Before they only 1099'd for professional sellers. They didnt even follow the traditional $600(?) rule. They only reported for profits in excess of I think it was $10k. Now EVERYBODY gets a 1099. (I think) No more honor system, even if you are just getting rid of a few things cluttering your house.

Ebays new policy will work well in conjunction with the dollar not being worth anything. We'll be trading chickens for diesel fuel, or something like that soon.

 

[d.kaufman]

Requiring reporting of anything over $600 is a ridiculous burden on the banks.

It's not about the dollar amount, at least according to what I had quoted. It's all deposits and withdrawals of any account that has a balance of $600 in it.

So basically if you have an account with $601 in it, and a withdrawal or deposit is made, it has to be reported

 

[ancjr]

Ebays new policy will work well in conjunction with the dollar not being worth anything. We'll be trading chickens for diesel fuel, or something like that soon.

You're supposed to report bartering....

Topic no. 420, Bartering income | Internal Revenue Service

Topic No. 420 Bartering Income

www.irs.gov

 

[ditcherman]

You are thinking in today's logic. Under Biden's new rules, that $5k may get flagged and require proof its not profit. The ultimate goal is to remove all under the table profits so everything is subject to the king's cut.

I get what you’re saying, the example of an irs refund check is maybe not the best one. They already know they gave that one to you and they know it’s not taxable. It’s in no way under the table and they’re trying to stop under the table. That kind of goes to my previous point of who deals in cash anymore, in a big way? I guess there probably are plenty, but none comes my way.

 

[Cameramonkey]

It's not about the dollar amount, at least according to what I had quoted. It's all deposits and withdrawals of any account that has a balance of $600 in it.

So basically if you have an account with $601 in it, and a withdrawal or deposit is made, it has to be reported

And after they see you drop $5,200 in your account over the year, they can ask "So what was that? is that profit? Have you reported it on your 1040? Where did it come from?

Oh, that's Grandma helping you out each week because you dont make enough on your (taxed) paycheck? Has she reported that as a gift? Because after a couple years of this, she might exceed the limits of lifetime tax-free gifts and you'll owe taxes on that too. We're watching!

 

[Cameramonkey]

I get what you’re saying, the example of an irs refund check is maybe not the best one. They already know they gave that one to you and they know it’s not taxable. It’s in no way under the table and they’re trying to stop under the table. That kind of goes to my previous point of who deals in cash anymore, in a big way? I guess there probably are plenty, but none comes my way.

You assume they are going to assume that deposit is THEIR money and you didnt CASH the check and this is DIFFERENT, coincidental income. Dont be ridiculous. They are going to assume all money is new money unless you can prove otherwise if they are getting this petty.

 

[ditcherman]

It's all banks and it's all withdrawals and deposits where the account has a balance of $600 or more

Here's a tidbit from one article

"Currently, banks are only required to report deposits of $10,000 or more, however, the proposal would require banks and other financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts with a balance of more than $600."

Link to article

Biden proposal would give the IRS access to your bank account - The Sentinel

The Biden buget proposal includes a provision that requires banks to report your banking transactions to the Internal Revenue Service.

sentinelksmo.org

I posted the same article not knowing you already had. When I read that, and just re-read it, I think that has to be misrepresented, misunderstood by the reporter. There’s no way they want that much info IMO.

EDIT upon further review, it does appear to be written with the “balance over $600” language. That’s crazy, but I do want to be in the side of truth.

 

[Cameramonkey]

Oh, and they're ramping up. I recall hearing that the IRS payroll budget was increased and they are hiring more staff to ramp up on collections, audits, etc. My company lost several collections folks company wide to the IRS. They quit working for us to start working for the IRS, effectively chasing "deadbeat" taxpayers.


I'm sure its not coincidental to this proposal.