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This Law Blog is a business law and tax law blog published by the business, tax, and health care lawyers at AttorneyBritt.
Our law blog presents commentary and information regarding the laws and regulations applicable to individuals, corporations, partnerships, and limited liability companies (LLCs); as they relate to the myriad of business transactions, contracts, and agreements every business owner, shareholder, member, physician, and/or health care provider must consider.
Democrats Raise Proposed IRS Bank YEARLY Reporting Threshold To $10,000 From $600
By David Lawder (Notes are by Gary L. Britt, CPA, J.D.)
WASHINGTON (Reuters) - Senior Democrats in Congress have agreed to raise their proposed tax reporting threshold for bank
account inflows and outflows to $10,000 a year, with exemptions for wage income, from an earlier proposal of $600 that drew criticism for being too intrusive.
(NOTE: Since this is NOT $10,000 per transaction. It is a law requiring banks to report accounts and account detailed information to the IRS for any account that has more than $10,000 in deposits or withdrawals in total during the calendar year. This will mean every person who has any kind of small business income will be subject to a warrantless search by the IRS of their banking records. It is a direct attack on the entire lower and middle class in this country. It is NOT as the democrats claim aimed at billionaires. If this were aimed at Billionaires the threshold would need to be more than $100,000,000 dollars per year.)
U.S. Senate Finance Committee Chairman Ron Wyden on Tuesday said the new $10,000 Internal Revenue Service reporting threshold, to be included in Democrats' sweeping "reconciliation" social spending and tax hike legislation, was chosen after consultations with the U.S. Treasury because it is a level frequently used in other bank reporting requirements.
(NOTE: Here they deliberately try to confuse the reader into thinking this new law would be about reporting TRANSACTIONS of $10,000 or more. And that is just a lie by both democrat Senator Ron Wyden AND the news media making uncritical reports of this lie. This law says report bank accounts that have more than $10,000 in deposits or withdrawals IN TOTAL during the calendar year!!!)
These include requirements for banks to report daily aggregate cash transactions of $10,000 or more under anti-money laundering rules.
Democrats' initial proposal for banks to report inflows or outflows of bank accounts of more than $600 annually drew sharp criticism from Republicans for targeting tiny transactions and opposition from banking and other lobbying groups who charged it would raise financial privacy concerns.
The proposal does not identify individual transactions, but gross annual inflows or outflows to help the IRS identify where wealthy taxpayers who do not rely on regular "W2" wage income may be hiding opaque source of business or investment income.
(NOTE: The democrats and the media think wealth taxpayers are taxpayers who deposit more than or withdraw more than $10,000 in total during an entire calendar year. That is BS of course.)
Wyden and Senator Elizabeth Warren said the revised proposal would exclude W2 wage income from the inflows and outflows data reporting requirement. Many Americans have their paychecks automatically deposited into their bank accounts.
Wyden said the revised proposal would potentially raise "hundreds of billions of dollars" by catching tax evaders, but declined to provide a specific estimate.
"This is about wealthy business owners at the tippy top of the top. That's where the unpaid taxes are," he told reporters on a conference call.
'TAX GAP'
U.S. Treasury Secretary Janet Yellen on Tuesday endorsed the proposal, saying it would make it harder for wealthy Americans to hide sources of income from taxation, allowing the IRS to target them for audits.
The Treasury estimates that the cost of tax evasion among the top 1% of taxpayers exceeds $160 billion annually, part of a "tax gap" between taxes owed and those collected estimated at more than $7 trillion over a decade.
"Today's new proposal reflects the Administration's strong belief that we should zero in on those at the top of the income scale who don't pay the taxes they owe, while protecting American workers by setting the bank account threshold at $10,000 and providing an exemption for wage earners like teachers and firefighters," Yellen said in a statement.
In a new statement on tax compliance proposals, the Treasury said financial accounts with money flowing in and out that totals less than $10,000 annually are not subject to any additional reporting.
"Further, when computing this threshold, the new, tailored proposal carves out wage and salary earners and federal program beneficiaries, such that only those accruing other forms of income in opaque ways are a part of the reporting regime," the Treasury said.
The department also said that financial services firms could report the total aggregate inflows and outflows from accounts rounded to the nearest $1,000 to further protect data privacy.
(NOTE: More lies. It zeros in on the middle class NOT the top 1%).
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"Last-Minute” Year-End 2020 Tax-Saving Moves For Individuals
Posted:2020-12-28 13:50:09 UTC-06:00
There are only a few days left to go before the year ends, but here are some actions you may take before the end of the year to improve the your tax situation for 2020 and beyond. Consider Biden's proposals. As the year comes to an end, it is hard to predict what, if anything, that Mr. Biden...
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5 Stars - Kev's 5 Best Corporate Attorneys In Austin
Posted:2020-12-21 14:55:00 UTC-06:00
5 Stars - Kev's 5 Best Corporate Attorneys In Austin ? AttorneyBritt offers services from professional business attorneys. Attorney Gary L. Britt, CPA, J.D. is experienced in the field of business law. He has represented numerous clients for business cases. A strong negotiator and...
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IRS Issues 2020 Inflation-Adjusted Amounts For Health Savings Accounts
Posted:2019-05-29 11:20:09 UTC-05:00
In a new Revenue Procedure (Rev Proc 2019-25, 2019-22 IRB), the IRS has provided the 2020 inflation-adjusted contribution, deductible, and out-of-pocket expense limits for health savings accounts (HSAs). HSA basics. Eligible individuals may, subject to statutory limits, make...
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2019 IRS Income Tax Deductions For Automobile Costs
Posted:2019-05-13 22:29:52 UTC-05:00
Businesses that use a car or other vehicle may be able to deduct the expense of operating that vehicle on their taxes. Businesses generally can use one of the two methods to figure their deductible vehicle expenses: Standard mileage rateActual car expensesFor 2019, here are the standard mileage...
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User CSS For Firefox And Thunderbird
Posted:2019-05-13 17:57:49 UTC-05:00
User CSS For Firefox And ThunderbirdUser CSS Contributions For CustomizeMyBird and Custom CSS For FX The repository at https://github.com/JYLD/User-CSS-For-Firefox-And-Thunderbird has user submitted CSS customizations for: The very excellent Firefox and Thunderbird add-ons by Aris-t2 at...
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Six Things Taxpayers Should Know About The Sharing Economy And Their IRS Taxes
Posted:2019-04-23 11:23:32 UTC-05:00
From renting spare rooms and vacation homes to car rides or using a bike…name a service and it’s probably available through the sharing economy. Taxpayers who participate in the sharing economy can find helpful resources in the IRS Sharing Economy Tax Center on IRS.gov. Here are...
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Physicians, Hospitals, Clinics, And Other Health Care Providers Beware HHS Interpretation Of HIPAA Compliance Rules
Posted:2019-04-23 11:06:45 UTC-05:00
As MD Anderson has learned the hard way over the past couple years HHS' interpretation of Mandatory versus Addressable HIPAA compliance rules and regulations can vary from the business practices of many Physicians, Hospitals, and other Health Care Organizations. HIPAA provides many compliance...
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How IRS Tax Reform Affects Taxpayers Who Claim The Child Tax Credit
Posted:2019-02-28 11:55:16 UTC-06:00
Many people claim the child tax credit to help offset the cost of raising children. Tax reform legislation made changes to that credit for 2018 and later. Here are some important things for taxpayers to know. Credit amount. The new law increases the child tax credit from $1,000 to $2,000....
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Five IRS Tax Facts About The New Form 1040
Posted:2019-02-25 16:55:04 UTC-06:00
There are several changes to the 2018 Form 1040. However, taxpayers who file electronically may not notice the changes as the tax return preparation software guides people through the filing process. The IRS worked closely with its partners in the tax return preparation and tax software...
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All Persons And Businesses Must Report Large Cash Transactions To The IRS - NOT JUST BANKS !!
Posted:2019-02-21 14:09:08 UTC-06:00
Federal law requires a person to report cash transactions of more than $10,000 by filing IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. The information on the form helps law enforcement combat money laundering, tax evasion, drug dealing, terrorist financing...
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