Yellen defends IRS rule requiring banks to report all transactions over $600

Income tax....

 

Items were sold at a loss, so you can claim the loss? I don't think so.

""In a garage sale, you generally sell household items you purchased over the years and used personally. If you paid more for the items than you sell them for, the sales are not reportable," the IRS says. So your neighbor is wrong. You don't need to claim your garage sale proceeds on your tax return.Jun 29, 2016

When you have a garage sale, do you have to pay income tax ...
https://www.cleveland.com › business › 2016/06 › when_...

 

So you think the IRS reviewing bank accounts with monetary transactions of $600 is not going to stutter when someone deposits proceeds from a garage sale? That, legitimate or not, the IRS is going to demand payment first, and require proof of innocence second?

What is the top line of legitimate proceeds one can prove are from 'garage sales'? if they claim they have no receipts for the goods they sold? Under this new and improved invasion of privacy, a measly $600 will draw the IRS eye....

 

Oh I think that the $600 simply because that is being deposited will raise this new red flag, but it still would not be taxable as the items were purchased for more than they were sold, it would just give them an excuse to look into your bank account.

 

Have you ever (or a business you were administrating) had the IRS 'look into' your financial affairs? You are assumed guilty and must defend yourself. It costs time, aggravation and usually money of some sort.

Using a ridiculously low level of $600 is indeed an excuse... and should not be permitted, as the example I provided highlights. You still have to prove the source of the funds to an over-reaching entity.

 

Yellen defends IRS rule requiring banks to report all transactions over $600

It is bad when the authoritarianism leaks down into the cabinet level where there is power to affect it. I'm trying hard to think of a cabinet secretary that gives me some confidence but I'm not coming up with anything.