Quote:
Originally Posted by mtdjed
My wife just made over $600 in a garage sale. She will deposit this in a bank account, Supposedly the government , under a proposed new bill will require the bank to report this to the IRS. If that were to pass, what would happen to that info? Would we be required to justify the source of the deposit? Would we have to show the initial value of the items to determine if there was some income.
Obviously dumb questions, but only because of a dumb proposal. Why does this even become the subject included in a congressional bill? Who are the architects of this nonsense?
Maybe she should make two deposits on separate days. That should create a value to hire extra IRS personnel to investigate. Any bill that includes such nonsense should be declared invalid because of congressional ineptness.
In fairness, I have not read the bill and cannot say what would happen. Only responding to what has been reported.
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Right now the limit is 10k. If you deposit 7k and 4k to avoid reporting it, that is considered structuring and they will in fact notice this.
Therefore, yes, structuring deposits to avoid reporting requirements will get you the glare of the IRS and a host of new auditors, looking to make their bones, will love you.
Right now, they're talking about $600. This requirement will be completely waived in the future and all deposits will be tracked.
This is nothing more than the Feds trying to cash in on the underground economy and have some new spying tools. They say it will fill a 7 trillion dollar tax gap.
Of course, like all feds, they discount human behavior. If we make $1 per pack of cigarettes, and we get taxes on 1 billion packs, by raising the taxes to $2, we will make 2 billion!!!. Yeah, right up until you don't.
All this $600 thing will do is allow the feds to target anyone. It won't stop smugglers or people who don't want to be tracked. It'll snare grandma selling pies at the bake sale and for what?
How about they look into the Panama papers and start there? When they recover some of those billions, maybe then we can talk about Me-ma's knitting and pies. Until then they need to drop this idiocy.