Outraged citizens and banks alike want to know why President Joe Biden plans to allow the IRS to snoop into bank accounts, Venmo, PayPal, and crypto transactions, among other types of payment accounts.
The White House, said, “This type of surveillance is needed to prevent tax evasion.”
Biden plans to use any money that is confiscated to fund his proposed plan for the Democrats’ $3.5 trillion budget plan.
If passed, banks would be required to report every deposit and withdrawal from an account to the IRS in order to target audits.
The plan targets the self-employed middle class who self-report their income and deductions.
Banking officials are against the plan and say it violates the Fourth Amendment, which protects U.S. citizens from search and seizure without probable cause.
Patrick Hedger, vice president of policy at the Taxpayers’ Protection Alliance in Washington, said, “You’re going to push more folks into small cash transactions, you’re going to push more offshore banking — the big fish out there that do have sizable assets that are eligible for taxation offshore.”
According to White House officials, the “plan would prevent tax evasion and the IRS would know how much money is in an individual’s bank account in a given year, and exactly how much is going in and out.”
Biden wants to know anytime $600 in gross payment volume from sales of goods or services in a single calendar year, regardless of the number of transactions, hits a person’s bank account. This includes sales made over Facebook.
In response to the government intrusion, FNB National Bank, wrote, “As your community bank, we want our customers to know the facts, especially when it relates to concerning developments around public policy that exposes your financial privacy.
The Biden administration has proposed requiring all community banks and other financial institutions to report to the IRS on all deposits and withdrawals through business and personal accounts worth more than $600 regardless of tax liability. This indiscriminate, comprehensive bank account reporting to the IRS can soon be enacted in Congress and will create an unacceptable invasion of privacy for our customers.
We work for our customers and our community, not the IRS.”