What does Biden’s proposal for IRS monitoring of bank account information mean for gun homeowners?

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There was a significant amount in the proposed $ 3.5 trillion budget proposal by the Biden administration, which allegedly requires banks to report transactions on accounts with annual activity greater than $ 600 to the IRS in coverage of the language. Understandably, gun owners and those wishing to exercise their rights protected by the second amendment were immediately affected.

Does that mean the IRS will be notified of almost every firearm bought from a dealer? Would you be notified of large ammunition purchases? How about some more expensive accessories?

Such a report to the IRS could de facto create a weapons register. And a federal list of certain ammunition and firearms accessory purchases.

We can only imagine how this information is being misused by the IRS and the current government. But is this reporting requirement actually given?

The message

Biden’s “$ 600 disclosure requirement” has been extensively reported in two different ways.

Some have said the requirement would require banks to disclose any transaction of $ 600 or more to the IRS. In other words, the IRS will be notified of each of your purchases over $ 599.

Others have reported that financial institutions are required to report every transaction to and from accounts with a balance greater than $ 600. Based on some posts and a communication from some local banks, this is the one that caught me.

But none of these seem to be the real proposition.

The application

In fact, the proposal, which is described in the general explanations of the Ministry of Finance on the revenue proposals of the administration for the financial year 2022, is stylized “Introduction of comprehensive financial accounting to improve tax compliance”.

This proposal would require financial institutions to report “gross inflows and outflows with a breakdown of cash, transactions with a foreign account, and transfers to and from another account with the same owner”.

The proposal would exclude “accounts below a de minimis $ 600 or fair market value of $ 600”.

This does not mean that banks would report every single transaction of $ 600 or more. Instead, banks would have to disclose all cash flow to and from an account as long as that total is more than $ 600.

US Treasury Secretary Janet Yellen stated during a congressional hearing that the proposal would require “aggregate inflows and outflows from these accounts every year” and “no transaction-level data.” This would be reported as new fields on the existing 1099-INT form.

Apparently the IRS has withdrawn the proposal, but Secretary of State Yellen is pushing for its resumption. Some politicians have remained vigilant in the opposition.

Take that away

What does this mean for gun owners?

This means that to date there has been no proposal to require the IRS to track individual purchases. Banks do not report transactions of $ 600 or more, nor all transactions from accounts of $ 600 or more. Press reports yesterday showed the government is adjusting its proposal from $ 600 in annual transactions to $ 10,000, an amount that would still cover a large percentage of Americans.

It also appears that aggregate reporting on inflows and outflows is questionable and may not be implemented at all.

Even so, we should remain vigilant. The federal government has just as little constitutional power to monitor the flow of money to and from our bank accounts as it does to monitor individual transactions.

As the gun community knows, these regulatory changes are often a slippery descent. It’s always best to keep your powder dry.

Cody J. Wisniewski (@TheWizardofLawz) is the director of Legal foundation of the mountain states Center to keep and carry weapons. He mainly focuses on Amendment 2 issues but is happy as long as he reminds the government of its enumerated powers and constitutional restrictions.

To learn more about the work the Center to Keep and Bear Arms does and to support their struggle for your natural right to self-defense – from both humans and tyranny – visit www.mslegal.org/2A and donate today!

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