Biden admin backs down on tracking bank accounts with over $600 annual transactions

TheDan

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How does your bank know what deposits are wages?
Direct deposits from an employer are pretty obvious. If you get a paycheck that you deposit yourself they'll likely lump that into the reporting system. I bet banks will count pretty much everything just to make sure they don't run afoul of the regulations.
 

SQLGeek

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It's worse than just a one time CTR. They are talking about reporting deposits totaling $10k annually.

I know. I was referring to the $600/transaction reports. Compared to those, $10K total annually would probably be considered a relief.
 

DoubleDuty

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So now they are saying only accounts transacting $10k annually, excluding wages that are already taxed, will be tracked. Was $600 the big ask, and $10k their target all along? It's still bullshit. They should have to get a warrant to see bank records.

...but it's nice to see that hypothetically speaking keeping a shit wage slave job will provide cover for your side hustle ;)
This still doesn't change the requirement for payment processors like Paypal or Venmo to report annual transactions totaling $600, so keep that in mind.
Yep, this isn't anymore acceptable. This government intereference needs to be stopped permanently.
 

toddnjoyce

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Direct deposits from an employer are pretty obvious. If you get a paycheck that you deposit yourself they'll likely lump that into the reporting system. I bet banks will count pretty much everything just to make sure they don't run afoul of the regulations.

While they may be obvious, unless the rule specifically excludes those types of transactions, the bank doesn’t get a say in the matter.

As I mentioned above AML limits are limited to cash/cash equivalent transactions that, in aggregate, exceed $10K per day. The rule would have to be similarly worded otherwise banks don’t have the latitude to assume without facing civil money penalties to the OCC.
 

DoubleDuty

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Well time to let them know we won't be putting up with this either. They mismanage the countries finances and we pay for it. We are a country of stupid.
 

TheDan

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Well time to let them know we won't be putting up with this either. They mismanage the countries finances and we pay for it. We are a country of stupid.
So what do we do? Write stern letters?
 

benenglish

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Banks already have to report currency transactions exceeding $10K per day in aggregate to regulators as part of anti-money laundering.
Yes, but people should keep in mind that structuring cases can cover multiple days. If you move $9K every day, then you're probably structuring. If the bank notices, they'll report it via a mechanism other than a CTR. But even if they don't notice it, you're probably still structuring and the case can be made.
 

benenglish

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Don't forget that the first objective of the giant donation to the IRS is for thousands of new employees
No politician will do that. Both sides score political points by under-funding the IRS, an organization that's been so neglected for so long that its practical enforcement capability is almost nonexistent. For the IRS to be moderately capable of enforcing tax law with the (poor) effectiveness they had 30 years ago would require doubling their budget in each of the next 2 years and then committing to keeping that funding level for the next couple of decades.

No politician will do that. As soon as word gets out they're actually trying to help the IRS do their job, that politician will get voted out.

As for the rest of your post, I won't quote it and reply since there are too many erroneous assumptions in it to unpack.
 

benenglish

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The thing that gets me about all this is that I'm considering having a garage sale (or 20) and doing some online sales to get rid of most of my stuff. If I do, I'll have a lot more than $10K in income, even though it's not really income. It's long term capital gains and losses, mostly losses. It really shouldn't be taxed but nobody has receipts for every little thing they've bought over the last 40 years to prove the loss. If I deposit cash in the bank and use that money to pay bills, I'll look like a tax cheat. I won't be a tax cheat but I'll definitely look like one.

Hmmm. Paying with cash is, I think, about to become a bigger thing in my life.
 
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