401K withdrawals?
I have not seen anything to indicate that the source of funds is even a consideration. It is simply cumulative transactions (deposits and withdraws), based on a very low threshold, triggering an IRS review of the individualās taxes and bank accounts.
1 Like
Read the article in the second post. Pay attention this time.
They āvowedā it wonāt happen. And you believe that ā ā ā ā ā
3 Likes
But it is in the news, it has to be true. 
3 Likes
It was a serious Dem proposal. But they were found out. Thatās the only reason they backed off.
2 Likes
Thatās not true at all. Every one of my investment accounts reports every cent of my gain to the IRS.
2 Likes
They want to know what you spend your money on, or at least, with whom you spend money with.
2 Likes
They didnāt back off, they raised the threshold to $10K
Nope ā¦ they backed off. $10,000 was already the threshold for banks to report transactions.
1 Like
$10,000 in transactions? That is just about everyone in the US pal.
Hell, I basically did almost $50,000 in transactions this year alone. A transaction is anytime you put money into or out of a bank account.
Swipe a debit card for coffeeā¦thatās a transaction.
Buy gasā¦thatās also a transaction.
Get a paycheckā¦yep, itās a transaction.
Have your insurance company deposit $5,600 into your bank account because your car got totaled (yes, this happened to me this year)ā¦that alone (youāre going to buy another car with that money right) will trigger the $10,000 transaction limit right then and there.
Should I be monitored by the IRS simply because some drunk bashed the living tar out of my Nissan Pathfinder, and I replaced it with a Honda Ridgeline? You tell me.
Nope. Two different things. The thread title is outdated.
No, but exactly what do you think you pay your bills with? Thin air?
What do you buy food with, or pay your rent with?
Money going out is a transaction as well. Those outward transactions when added together add up to a helluva lot more than $10,000
Does this scare you yet?
What that means is that only business owners, the self employed in other words, will be subject to it.
Every cent of money going outward is a transaction.
Just about everyone will trigger this as those transactions add up.
See where Iām going with this?
I do see, but you are wrong. The entire purpose is to find tax cheats. People working for wages or salary at a job have their taxes automatically withheld.
You are missing the point.
Wages are money going in. Those wonāt be tracked.
However, people living on wages donāt hoard money. They pay it out to others.
These are transactions as well, and they will trigger the $10,000 limit quite easily (unless you earned less that $10,000) and can get you watched by the IRS if Iām reading this correctly.
Now if they were talking about single transactions of $10,000 or more, that is different. About the only time normal people would trigger that is by selling a home, or cashing out an IRA or 401k.
Either this thread is wrong, or Iām missing something.
That is what I said ā¦ they āraisedā the amount back to where it has been for many years. Remember, this is with regard to a lengthy bill. To save all the editing that would be necessary to just drop the reporting language altogether, they simply changed the number to $10,000 making that provision redundant to existing law.
Is anybody really defending this? I donāt care if itās $10, what difference does the freakinā amount make?
2 Likes
Perhaps, but itās been the law since 1970.
