Quote:
Originally Posted by blueash
This is so typical on this website:
Well perhaps just once, perhaps you could actually read the "bill" before you post such a totally wrong highly political comment. Obviously your posting was an attack on the administration.
By the way you might find it difficult to read the bill as there is NO BILL written. Use Google to educate yourself instead of just posting misinformation.
As to what you are supposed to do... if you made a profit on the sale of items you are already required by law to report that income. You know that don't you? The IRS is aware that there are lots of tax cheats out there. It is the job of the IRS to collect taxes due to the federal government. Their budget has been cut at the same time as the anti-government fever has increased.
Banks already report your account information to the IRS. If you make a lousy 10 dollars in interest it gets reported. If you only make 9 dollars it does not, but guess what, you are still required to pay income tax on that unreported 9 dollars.
If you sell one share of Amazon via your Fidelity account, they are required to report that sale to the IRS including if they have the data your sell price and your cost basis. You pay mortgage interest to a bank.. it gets reported to the IRS. The idea that having financial institutions report transactions is a well established part of our law. There is a proposal to add two lines to the IRS requirement for banks on your account. How much money moved into your account and out of your account on a yearly basis, not on an individual transaction basis. While it is not clear to me how this will help reduce tax cheaters, I don't know how this data would get used to inform the IRS which tax payers need a closer look.
What is being proposed but NOT part of any legislation, is that a mechanism be found to collect taxes already due but not being paid rather have to close budget gaps by increasing taxes on those who don't cheat and defraud the government. |
Thank you for posting this, I won't have to.
The main points are - there is NO bill, it is a suggestion. Not reporting income is a federal offense. The proposal is NOT to monitor individual transactions, but aggregate over the year. So, any bank account would report the total amount deposited and withdrawn from the account in the course of a year. NOT when, why, or any other information. So, the IRS can cut down on the Billions that tax cheats are not paying.
If you are not a tax cheat it doesn't impact you at all.