Joe Biden IRS audit proposal raises accountability, privacy issues
May 06, 2021 2 mins, 22 secs

President Biden’s push to enlist a beefed-up IRS to wring additional money out of large corporations and wealthier taxpayers is being greeted with skepticism from the banking industry and stoking fears that tax collectors will mishandle law-abiding Americans’ deposit and withdrawal information.

As part of his $1.8 trillion “American Families Plan,” the president also proposed requirements that financial institutions expand their annual reporting to cover account inflows and outflows — a step beyond the typical wage and earnings information that Americans provide the federal government when they file income tax returns every year.

Steven Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center, said the administration has the right idea on the reporting requirements but that the scope is much too broad and would likely leave the IRS with reams of relatively useless information.

He said the concealment or omission of taxable income, which the additional reporting requirements would presumably be designed to catch, does happen but sophisticated tax evasion would still be a problem with stepped-up enforcement.

The requirement for banks to report annual account inflows and outflows would extend to peer-to-peer payment services such as Venmo but wouldn’t require individuals and businesses to report any additional information to the government, according to an article in The Wall Street Journal.

The Treasury Department said the new requirements don’t increase any reporting burdens on taxpayers and would simply make financial institutions add account inflow and outflow data to their annual reports.

“Providing the IRS this information will help improve audit selection so it can better target its enforcement activity on the most suspect evaders, avoiding unnecessary (and costly) audits of ordinary taxpayers,” Treasury said.

“The IRS currently has broad authority to access this data, but under the proposal, the administration would essentially be requiring banks to become a tool in the IRS arsenal,” said one industry expert familiar with bank privacy issues.

Rosenthal said average taxpayers wouldn’t have to actively do much more but the mere threat of additional enforcement could send people scrambling to put their financial affairs in order

“Even if the IRS never uses it, even if it sits in a warehouse like in ‘Raiders of the Lost Ark’ … the question is: Will taxpayers be scared?” he said

He said he wasn’t sure that Americans would change their behavior and that most would probably be inclined to trust the IRS not to misuse personal information

The administration estimates that a funding boost for the IRS, combined with the new reporting requirements and improved technology, would generate $700 billion in revenue over 10 years

He and former IRS Commissioner Fred Goldberg estimated that the federal government could generate $1.4 trillion over 10 years through increased third-party reporting, improvements in technology and reconfiguring how the IRS conducts audits

1. Aging Hubble Space Telescope in Safe Mode Following Computer Glitch - Gizmodo
Jun 17, 2021 # politics 44 secs
2. Arizona Diamondbacks fall to San Francisco Giants, set modern-era record with 23rd straight road loss - ESPN
Jun 17, 2021 # politics 57 secs
3. Avalanche of Options Trades Fuels Market Pullback - The Wall Street Journal
Jun 18, 2021 # politics 1 min, 15 secs
4. PUBG Mobile returns to India after ban with green blood and a new name - The Verge
Jun 17, 2021 # politics 24 secs
5. Metals from space descend on Boulder, Colorado, at dusk and dawn - Ars Technica
Jun 14, 2021 # science 59 secs
6. Mosquitoes test positive for West Nile Virus in Cook County; no human cases reported - WGN TV Chicago
Jun 16, 2021 # health 52 secs
7. Frank Bonner, who played Herb Tarlek on the TV sitcom 'WKRP in Cincinnati,' dies at age 79 - CNN
Jun 18, 2021 # entertainment 24 secs
8. Pacific Theatres Files For Chapter 7 Bankruptcy - Deadline
Jun 18, 2021 # entertainment 38 secs
9. Opinion: The retreat of North Americanism: Canadians and Americans keep moving further apart
Jun 17, 2021 # breaking 1 min, 9 secs
10. White House walks back Biden comments on cybercriminal swap with Russia - New York Post
Jun 14, 2021 # politics 55 secs
11. Two Connecticut residents test positive for Powassan virus -
Jun 17, 2021 # health 40 secs
12. Anthony Mackie gets heat from Marvel fans for shutting down Sam and Bucky romance speculation - USA TODAY
Jun 19, 2021 # entertainment 1 min, 22 secs
13. QAnon Believers Suggest Secret Message Behind Announcement of Biden Dog Champ's Death - Newsweek
Jun 19, 2021 # politics 47 secs
14. FIFA 21's Loot Boxes Can Now Be Previewed Before You Buy - Kotaku
Jun 18, 2021 # technology 36 secs
15. How America’s top hospitals send patient costs soaring
Jun 14, 2021 # breaking 2 secs
16. 'Deadliest Catch' cast reacts to the death of Nick McGlashan in emotional tribute episode - Fox News
Jun 16, 2021 # entertainment 59 secs


Get monthly updates and free resources.


© Copyright 2021 365NEWSX - All RIGHTS RESERVED