According to the document, “General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals,” the Biden administration plans to require banks and other financial institutions to report transactions over $600 to the IRS.
In the document on page 88, it reads, “Financial institutions would report data on financial accounts in an information return. The annual return will report gross inflows and outflows with a breakdown for physical cash, transactions with a foreign account, and transfers to and from another account with the same owner. This requirement would apply to all business and personal accounts from financial institutions, including bank, loan, and investment accounts, with the exception of accounts below a low de minimis gross flow threshold of $600 or fair market value of $600.”
Proponents of this policy say it will help to recover lost revenue due to tax evasion, as the Treasury Department estimates the loss of revenue to be approximately $600 billion annually and $7 trillion over the next decade. Critics of the policy say it violates the 4th Amendment which protects people “against unreasonable searches and seizures,” and that it will ultimately “hurt the poor.”