Yup, every transaction of $600 and over would be reported to IRS. It used to be $10,000.
Think about how much wider that net will be cast.
Cash is gonna be king somehow
Not quite correct, the actual proposal is for any transaction $600 or over AND any transaction into ANY account that has in the entire history of the account had $600 or more passed through it in aggregate, to the beginning of time.
I will transfer $650 every day form my saving to my checking and vice versa if this happens. Just to flood them with data ............
And as others have found out, you'll get a tax bill for all that as "Income" and it will be on you to prove you don't owe the tax.
I'll go one better, on my days off I'll spend an hour at the bank withdrawing then depositing $601. Flood the damn system.
I hope you like paying a tax lawyer, because all that WILL be counted as income and they will come after you for taxes on it, then interest, then penalties and it will be on you to spend a lot of time proving that you didn't make that money but were just playing around. You don't pay, no problem, you find your bank accounts seized.
It'll just have to be in multiple transactions of under $600 for items. There's always a way.
As mentioned above, it's any account in aggregate of $600 total for the entire life of the account.
So you get a bunch of $100 payments into an account, once that account has hit $600 worth of receiving or sending... tax reporting time.
You sell a bit of stuff using PP or Zelle or any other funds transfer service? Yep once you have hit the lifetime account limit of $600 it gets reported.
You list stuff on eBay, yep reported if you all your sales since the beginning of time have a total of $600 or more.
Essentially everything is going to be reported.
You may think you'll overwhelm the system, but you won't, instead it will be the other way around.
The system will automatically bring in all the data, calculate what you got in, then flag your account as owing more taxes.
Then good luck getting ahold of someone at the IRS to correct the issue, they don't care, and while you try, interest and penalties will accrue and you'll be forced to pay up and hope to get in line in tax court to get it back.
It's a backdoor way to force people to pay taxes they don't owe, by making the system totally rigged so you have to pay up anything they say, or be labeled a tax cheat, and good luck with trying to fight it.
