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The new $600 bank/IRS proposal is NOTHING like the front page post would have you believe.

The new $600 bank/IRS proposal is NOTHING like the front page post would have you believe.

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by COINS NEWS 27 Views

I may get some flak for this but clearly the OP of the current front page post didn't actually read the proposal, nor did almost anyone else in that thread. The title itself and many of the comments are outright false. Let me be clear: I am not advocating for or against the proposal. I am simply trying to make sure people actually know what is going on.

What is it actually? The proposal does not check every single transaction over $600. Depositing and withdrawing $700 won't do shit. It is as simple as that. It checks an aggregate sum of all transactions once at the end of the year to see if inflows were greater than outflows. Again let me reiterate: this is only reported once per year, not per transaction. If the delta was greater than $600, it gets sent to the IRS. Also, it won't trigger some automatic audit as people seem to think. In 99.9999% of cases itll go in some folder never to be seen again. But, they can technically use this to cross check with tax returns to see if someone was up to something fishy. It is just another tool in their admittedly large arsenal.

Why is it so low? It is allegedly a deterrent from having large corps and wealthy individuals creating a bunch of separate bank accounts to skirt the reporting requirements. It would be quite a hassle to secretly funnel millions/billions through tens or hundreds of thousands of checking accounts. Again, not arguing for or against that number here... just clearing things up. Do the wealthy even use checking accounts that will be affected by this? I am not informed enough on tax avoidance to be able to say.

What I do know is that we should be above such blatant misinformation if we want crypto to be successful.

That is all. Thanks for coming to my Ted talk.

submitted by /u/TheFoxhalls
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