Bad news for American workers and small businesses: A nefarious rule billed as “improving tax enforcement” will give the Internal Revenue Service (IRS) more access to our private bank account information.
Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig are resurrecting the American Families Tax Plan Compliance Agenda, specifically honing in on a measure to direct the IRS to track annual inflow and outflow information from bank accounts for non-cash transactions exceeding $600. What’s their goal? To create a “comprehensive information reporting regime” that makes “tax administration more equitable.”
“The President’s proposal would help make tax administration more equitable by subjecting financial flows, especially those that accrue disproportionately to those at the top of the income distribution, to third-party reporting as well,“ the May 2021 document reads.
The Center for American Progress (CAP) says the Biden administration’s plan to “improve tax enforcement” is to “fund IRS enforcement of high-income individuals and corporations.”
Would this rule be more equitable and discourage tax evasion? The evidence points to the contrary.