The "American Families Plan" And Possible Negative Effects On CRH

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.

"This proposal would create a comprehensive financial account information reporting regime. Financial institutions would report data on financial accounts in an information return. The annual return will report gross inflows and outflows with a breakdown for physical cash, transactions with a foreign account, and transfers to and from another account with the same owner. This requirement would apply to all business and personal accounts from financial institutions, including bank, loan, and investment accounts, with the exception of accounts below a low de minimis gross flow threshold of $600 or fair market value of $600."

"Imagine a taxpayer who reports $10,000 of income but has $1 million of flows in and out of their bank account. Having this summary information will help flag for the IRS when high-income people under-report their income (and under-pay their tax obligations). This will help the IRS target its enforcement activities on those who are actually evading their tax obligations, decreasing costly and burdensome audits for the vast majority of taxpayers who pay what they owe.""

the idea is to get an annual report and identify who is cheating taxes, whether it be off the books businesses, or offshore accounts. it's not meant for in and out transactions, it's looking for people that claim they earn no money, but tons of it keeps appearing in their bank accounts over lots of smaller transactions. this has been coming for a long time, the threshold was $10,000. people just do multiples of less than that now $5K here, $9K there, or they buy or sell stuff on facebook or craiglist and don't pay taxes and claim they don't have income.

it really doesn't affect anything unless you are cheating on your taxes. Taking out $500 or $1000 for coins and depositing $500-$1000 in coins, is just transnational, no additional money is appearing that you didn't report as an earning,,, unless again, you are cheating on taxes.

they will "get used" to coin roll hunters and what that looks like or just keep transactions under $500 a pop if it worries you.

I feel so sorry for the younger people who never knew a US where it was none of the government's business to interfere this far into our personal lives. The allegedly are so afraid some tax dollars will not be submitted to them and then waste them on insanity spending (like jbuck said with the cent but TONS worse).

I wonder what is stalin them from going all the way down to $100.00?

Oops...was that political? I thought of it automatically and could not help myself

OK...disclaimer..any reference to any person/ideal perceived by the use of a pun is purely done in a manner of jest with absolutely no connections to reality and should not be misconstrued to have a real life bearing on any one political party, political preference, political mindset, political system, or political side of the fence (real, perceived, imaginary or otherwise) or lack hereof, thereof, and everywhereof (especialy on CCF).


BTW I am not a hypocrite! I like the cent, I want the cent o be here forever and I would hate to see it go

...but its a waste of taxpayer money so...get rid of it already!

Better yet, get rid of the politicians who are irresponsible with our tax dollars...problem solved...uh huh...ain't gonna' happen.

This plan is stupid. I will call up the IRS and tell them that I do this thing like adding and taking out money cause I like to look at it if they care. I do not believe that tax evasion is a problem. Hide the money in the microwave.

Since the report limit is $600, I am reasonably certain that it won't make any difference to CRH'ing.

In the Australian experience $70 million was lost to scammers in 2020. To my way of thinking, that is not tolerable. The banks couldn't care less how you manage your personal security; not their problem.
For that reason, I have ceased using credit cards, and only rarely use debit cards.

With covid-19 inducing banks to encourage the use of cards, my response is to increase the size of my cash float that I store with my coin collection in a rather secure safe.
It will also force the increase of Bitcoin transactions, for those who like to pay digitally.
Such a reaction will only make more difficult for tax authorities.

BTC is too expensive for most day to day transactions (in terms of gas fees and wallet fees), Tether would be better, but I digress.

How does the IRS catch up with those who buy/sell using Bitcoin, through a VPN?

Looks like a wide open door for scammers and drug dealers, to my way of thinking. Methinks Al Capone would never have been caught.

My local credit union has served me well over 35 years now.

This is how change begins. Inflows and outflows today, every detail soon to follow. The government is a hungry beast and they need to track every transaction to be sure they get their "fair share".