Biden administration revises controversial proposal to have IRS monitor bank accounts more closely. Here’s how it would work.
After uproar over a proposal to have banks tell the Internal Revenue Service about their customers’ annual cash-flow information, the Biden administration and congressional Democrats unveiled a new, pared-down proposal on Tuesday. Now the question is whether this version of the proposed reporting requirement, which would kick in at the $10,000 mark instead of covering transactions above a $600 threshold, will, if it passes, win over critics and help the IRS catch tax cheats. In the Biden administration’s bid to ensure rich households pay their full tax bill, they proposed months ago that bank, loan and investment accounts report to the IRS on their customers’ aggregate “inflow” and “outflow” above the $600 point on a yearly basis.