 Will Banks Have To Report All Transactions Over $600 to IRS Under Biden Plan
Thoughts?
What's True
According to the proposed American Families Plan, banks would “report gross inflows and outflows” for all business and personal accounts to the Internal Revenue Service (IRS), “with the exception of accounts below a 'low de minimis gross flow threshold of $600 or fair market value of $600.'” But ...
What's False
... this does not mean all individual transactions above that threshold would be reported. Rather, aggregated numbers would be provided to the IRS annually.
What's Undetermined
A parenthetical to the proposal indicates that the administration would be “flexible on raising the minimum account balance/inflow/outflow above $600.” If passed and signed into law, the proposal is expected to go into effect for tax years after Dec. 31, 2022.
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