Treasury Secretary Janet Yellen defended the Biden administration’s proposal to force U.S. banks to report any Americans’ transactions of $600 or more to the Internal Revenue Service by claiming that the financial agency already tracks American activity anyway.
“Banks already report directly to the IRS the interest that they pay on accounts when it exceeds $10, and this is not a proposal to provide detailed transaction-level data by banks to the IRS,” Yellen argued. “It is a proposal to add two additional pieces of easily ascertained information onto the 1099-INT form the banks already file.”
The Biden official further justified her position by claiming that the government needs money and siphoning funds off of taxpayers is an effective way to fill that gap.
“I think it’s important to recognize that we have a tax gap that’s estimated at $7 trillion over the next decade,” Yellen said. “That is taxes that are due and are not being paid to the