The IRS would know more about our bank accounts with new legislation

The IRS would know a lot more about our bank accounts under new legislation.

The American Families Plan, proposed by the Biden Administration, aims to boost middle class families.

Legislation proposes reporting inflows and outflows of cash over $600 for both individuals and businesses to the IRS. The intention behind this is to ensure all people and businesses are paying their fair share in taxes. However, for many people, the reality of this raises several concerns.

Michigan Bankers Association CEO Rann Paynter said instead of adding legislation to regulate, the IRS should instead look to improve their current system.

“A better way would be for the IRS to update and enhance their processes that are already in place,” he said. “Utilize those in more effective ways to do a more comprehensive job.”

Paynter added that this part of the legislation would add a lot of work for banks. Reporting every transaction over 600 dollars is a lot to ask. Also, many logistics are still unclear.

“Will the IRS really be looking at the inflows and outflows of the average citizen? That’s part of what’s unknown,” he said. “It’s not clear how the notification would be.”

The full legislation includes numerous economic and social reforms.

For more details, Fact Sheet: The American Families Plan | The White House