A new proposal from the Biden administration seems to work with banks to find people who are not paying their taxes.
To help find those funds, the Biden administration wants to give the IRS new details on their customers and provide data for accounts with total annual deposits or withdrawals worth more than $600.
However, many account holders are raising privacy concerns about the new plan.
Administration officials say the U.S needs more information from taxpayers to find those who are not paying what they owe.
Midtown Manor resident, Gregory Glasper says the plan comes at too high of a cost.
“It's an intrusion into the privacy of U.S. citizens,” said Glasper. “What they do with their bank accounts is their business.”
James Ozzello of Rochester shares a similar opinion. He is appreciative of the government’s involvement in issues such as COVID-19 and public health but feels the government has abused its power increasingly over the past few years – this new plan is the latest example.
“Everywhere we turn around we are hit again with having to tell the government something we didn’t have to before, having to do things we didn’t have to do before,” said Ozzello.
According to U.S. Treasury Secretary Janet Yellen, the purpose of the plan is to crack down on an estimated $7 trillion in unpaid taxes – being evaded primarily by wealthy Americans and businesses – over the last decade.
Karen Lindsay is one of the taxpayers that feel that the $600 threshold will be targeting the wrong group of people.
“The fact that they want to monitor deposits of $600 or more,” says Lindsay. “They’re pushing the people who deserve it the least and who are suffering the most throughout this pandemic. Richer people need to be monitored, not us.”
Treasury officials say this effort is not directed towards lower- or middle-class households. However, some taxpayers stand firm in their belief that if the IRS aims to seek out upper-class households, the threshold should be raised higher than $600.