 
     |
| New "Proposed" Banking Regulations (Page 4/5) |
|
2.5
|
AUG 30, 12:06 PM
|
|
| quote | Originally posted by maryjane:
The $600 specific quantity seems suspicious to me.
|
|
It doesnt make alot of sense but wasnt $600 also the magic number one was allowed to make in a yer without claiming it /paying taxes on it?
|
|
|
|
blackrams
|
OCT 01, 06:15 AM
|
|
| quote | Originally posted by randye:
Where is the full text of this "proposal"?
Who proposed it?
Is it a bill already submitted and if so what is it's number ?
Is it in a banking and commerce committee in one of the houses of Congress?
A "proposal" like what is described here would certainly require legislation to change the Code of Federal Regulations that applies to the US Banking Regulations as well as the IRS tax code and as a consequence would require passage by both houses of Congress.
I checked the website at the link provided and it answered none of my questions either.
There are a lot of questions here with apparently no answers.
It would be great to discuss this IF there was something substantive to discuss.
|
|
Well, this is back in the news. Nebraska has taken a firm stance against this. I don't have enough information about this at this time but, apparently this is part of the proposed $3.5 Trillion budget bill currently being pushed by the Dems. This topic is being discussed in a Congressional hearing. So, apparently there is some substance to the initial letter sent to me by Priority Bank.
Banks required to report any transaction of $600 or more to the IRS. If this passes, I predict mattresses will start getting fatter. 
Rams[This message has been edited by blackrams (edited 10-01-2021).]
|
|
|
|
blackrams
|
OCT 01, 06:35 AM
|
|
Fact check: Claim about the IRS monitoring bank accounts over $600 exaggerates reality
The claim: Treasury Department 'declares' IRS will monitor transactions in all U.S. bank accounts over $600
A tax law proposal by the Biden administration has led social media users to question whether the government is overstepping on Americans’ financial privacy.
“Biden’s Treasury Dept. Declares IRS Will Monitor Transactions of ALL U.S. Accounts Over $600," reads the headline of a Sept. 10
The same claim popped up in various iterations on social media, like a Sept. 22 Instagram post claiming Biden's proposal would give the IRS "direct access to your bank transactions." It accumulated several thousand likes within the first day.
While the claim is based in reality, it gets many of the facts wrong. The claim’s assertion is a proposal by the Biden administration, not a decision set in stone. The Treasury cannot “declare” any changes to law, as that is a legislative power that belongs to Congress. And even if the proposal is adopted banks would not provide access to individual transactions, just the total amount flowing in and out of an account annually.
Proposal by Treasury isn't official
A May document from the Department of the Treasury outlines a number of the Biden administration’s revenue proposals for the 2022 fiscal year. The proposal referred to in the claim suggests introducing more comprehensive financial account reporting to “improve tax compliance.”
The latest IRS estimates show a tax gap of $166 billion per year between the tax owed by businesses (not counting large corporations) and the tax actually paid. The document says requiring comprehensive reporting on money flowing in and out of accounts "will enhance the effectiveness of IRS enforcement measures and encourage voluntary compliance."
To achieve that, the Treasury proposed requiring financial institutions to annually report the total amount of money that went in and out of bank, loan and investment accounts if those accounts hold a value of at least $600, or if the total is at least $600 in a year.
That means that if the total debits (funds flowing out of the account) and credits (funds flowing into the account) equal at least $600 — including deposited paychecks or money transferred from finance apps like Cash App or PayPal — banks would have to report those figures to the IRS.
However, the banks would not report details on individual transactions, like how the money was spent, only the total amount of money flowing in and out of the applicable accounts.
Having that information will help the IRS flag under-reported income and target enforcement activities on tax evaders, the Treasury said.
Chuck Marr, senior director of federal tax policy at the Center on Budget and Policy Priorities, told USA TODAY the threshold for tracking the funds is set low, at $600, to make sure the system can't be manipulated by the wealthy.
"It's hundreds and hundreds of billions of dollars a year of taxes that are legally owed and not collected at the IRS which has been decimated with a decade of budget cuts, and that has led to a plummeting of audit, particularly of high income people, to the point now where some the highest capital audit rates in the country tend to be in Deep South poor, Black, rural counties, which is obviously upside down," Marr said. "...You want to make sure the threshold is low enough so these people cannot divide up their money into multiple accounts."
The proposed initiatives are aimed at making the tax system more equitable and efficient, said Natasha Sarin, the treasury's deputy assistant secretary for economic policy.
“Overall, the Administration’s compliance initiatives are guided by a singular objective – bringing about an end to a two-tiered tax system, where ordinary Americans comply with their tax obligations, but many high-end taxpayers do not,” Sarin said in a statement.
The prospective reporting requirements are being considered as a revenue offset for Congress' $3.5 trillion reconciliation bill, as the Treasury estimates the system will generate $460 billion over a decade. The proposal last appeared in negotiations for the $1 trillion bipartisan infrastructure package that passed the Senate in August and is awaiting a vote in the House, the American Banker reported Sept. 8.
Additionally, the Biden administration cannot “declare” any change to the current law as the InfoWars headline asserts, as that is a legislative power that belongs to Congress.
If approved, the proposal would go into effect after Dec. 31, 2022.
https://www.msn.com/en-us/n...cid=uxbndlbing&pfr=1
Rams
|
|
|
|
randye
|
OCT 04, 11:07 PM
|
|
SOMEBODY FORGOT TO SEND THE "NEW BANKING" MEMO TO THE USPS
https://www.yahoo.com/news/...could-151059024.html
"WASHINGTON - The U.S. Postal Service quietly began offering paycheck-cashing services at several East Coast post offices last month, testing a plan that financial experts say has the potential to transform how low-wage and underserved Americans access their money.
Postal customers can now redeem paychecks in Washington, Baltimore, Falls Church, Va., and the Bronx, N.Y., for Visa gift cards topping out at $500..."
It's damned hard to track deposits and withdrawals when they aren't any.[This message has been edited by randye (edited 10-04-2021).]
|
|
|
|
blackrams
|
OCT 04, 11:12 PM
|
|
| quote | Originally posted by randye:
SOMEBODY FORGOT TO SEND THE "NEW BANKING" MEMO TO THE USPS
https://www.yahoo.com/news/...could-151059024.html
"WASHINGTON - The U.S. Postal Service quietly began offering paycheck-cashing services at several East Coast post offices last month, testing a plan that financial experts say has the potential to transform how low-wage and underserved Americans access their money.
Postal customers can now redeem paychecks in Washington, Baltimore, Falls Church, Va., and the Bronx, N.Y., for Visa gift cards topping out at $500..."
It's damned hard to track deposits and withdrawals when they aren't any.
|
|
Well now, that is interesting. Don't tell the Dems in Congress about that, I would expect them to call the Post Master General in for "counseling". Obviously, he needs to get with the program.
Rams
|
|
|
|
MidEngineManiac
|
OCT 04, 11:56 PM
|
|
|
Payday loan places have been doing that forever. They take 2 or 3% off the top for it, BUT the problem is very-very few employers pay by cheque anymore, it's all direct deposit. [This message has been edited by MidEngineManiac (edited 10-04-2021).]
|
|
|
|
randye
|
OCT 05, 01:29 AM
|
|
| quote | Originally posted by MidEngineManiac:
Payday loan places have been doing that forever. They take 2 or 3% off the top for it, BUT the problem is very-very few employers pay by cheque anymore, it's all direct deposit.
|
|
But my post WASN'T about "payday loan places".
It is about an official agency of the United States government offering a "new" check cashing service.[This message has been edited by randye (edited 10-05-2021).]
|
|
|
|
blackrams
|
OCT 05, 10:25 AM
|
|
| quote | Originally posted by randye:
But my post WASN'T about "payday loan places".
It is about an official agency of the United States government offering a "new" check cashing service.
|
|
The thought just occurred to me that once the Dem leadership figures this out, they may try to decide to additionally require employers to report individual pay checks as a back up. May already be there, I don't know. What I do recognize is that the Dem leadership is desperate to find ways to pay for that $3.5 trillion Social Spending Bill they want to buy votes with. Some of you folks may have some unreported/unclaimed income they want to tax.
Rams
|
|
|
|
maryjane
|
OCT 05, 06:47 PM
|
|
| quote | Originally posted by randye:
SOMEBODY FORGOT TO SEND THE "NEW BANKING" MEMO TO THE USPS
https://www.yahoo.com/news/...could-151059024.html
"WASHINGTON - The U.S. Postal Service quietly began offering paycheck-cashing services at several East Coast post offices last month, testing a plan that financial experts say has the potential to transform how low-wage and underserved Americans access their money.
Postal customers can now redeem paychecks in Washington, Baltimore, Falls Church, Va., and the Bronx, N.Y., for Visa gift cards topping out at $500..."
It's damned hard to track deposits and withdrawals when they aren't any.
|
|
As if the lines at the branch post offices aren't long enough already.
|
|
|
|
Raydar
|
OCT 06, 07:08 AM
|
|
| quote | Originally posted by maryjane:
As if the lines at the branch post offices aren't long enough already. |
|
Exactly what I was thinking. Going to the Post Office around here is a complete PITA.
|
|
|
|