Yellen said the Wyoming Republican misunderstood what the Treasury is asking of banks, which already report account interest information on Form 1099-INT every year. In fact, nothing in the Treasury’s revenue proposals for fiscal 2022 seeks Congressional approval to require banks to report customer transactions of $ 600 or more.
The tester’s concerns about privacy are synchronized with those of Daines. The Democrat thinks the $ 600 account threshold is too low.
“He believes any changes to reporting must take into account both the privacy rights of Montana residents as well as the costs and burdens that complying with any new regulations would impose on Montana’s small financial institutions,” said spokesperson Andy Bixler in an email. “Having said that, Senator Tester also thinks it is important that millionaires, billionaires and corporations pay their fair share of taxes, just as hard-working Montanais do, which is why he believes a $ 600 threshold for reporting is too low, and the IRS and Congress should focus on the wealthy who avoid paying their fair share.
The Biden administration has said it intends to step up audits on people earning more than $ 400,000 a year, no less. The requested funding increase to strengthen the IRS is $ 80 billion.
What the IRS data shows is that most people whose income is collected through payroll taxes pay their taxes. In large part, this is because professional payroll clerks ensure that most, if not all, employee income tax is withheld each payday. Salaried employees as a group pay 91% of their income taxes. Corporate tax, which is the corporate income tax, is paid voluntarily 86% of the time. But not all businesses pay corporate tax. Intermediate businesses, which are mostly small businesses, do not pay corporate tax. Instead, the business owner reports the business income as personal income on their 1040 tax form.