IRS Bank Reporting has been a hot issue all summer long. Today’s Tax Talk has been bringing this issue to the forefront since May 2021, knowing if the public knew of these plans there would be a ground swell of opposition.

In September 2021, because of bank and constituent complaints the Congressional Committee pulled the provision for the Bill, only to have it reinserted days later with a promise to increase the threshold from $600. In mid October Congressional Leaders announced the threshold change to $10,000.00. But it wasn’t enough.

At least 100 Banks and other interested parties published opposition and criticism of the entire concept as an invasion of privacy. Senator Joe Manchin voiced his opposition to the provision. Now, 21 Democratic Members of Congress have come out against it.

That should be the end of it. But, is it? Attorney Steven A. Leahy reviews the news stories or this issue. Where do we go from here?

The Administration looks to upend the Constitution in order to obtain the money necessary to “reshape” America. The Bank Reporting provision may have been defeated. So, the Wealth tax has been introduced as an alternative. The Constitution appears to stand in the way. The 4th Amendment proclaims “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated.” This amendment, I believe, prohibits the administration’s Bank Reporting proposal.

The 16th Amendment allows Congress the “power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” The 16th Amendment does not allow the taxation of unrealized value – as that isn’t “Income.”

Attorney Steven A. Leahy interprets the Constitution in a way the protects American Citizen’s privacy, property and dignity.

The emerging Eth2 virtual currency is making news with its coming upgrades that improve the scalability, security, and sustainability of Ethereum. Those upgrades include moving the consensus mechanism from proof-of-work (PoW). to proof-of-stake (PoS). PoS will drastically reduce the amount of energy necessary for mining blocks.

Ethereum’s smart contract capabilities combined with the ease of validation and reduced energy requirements make it the prime candidate to take the role of World Reserve Currency.

The IRS handed out Child Tax Credits, Stimulus Money, Unemployment refunds and tax refunds to millions of Americans. Now, the IRS has sent out millions of Math Error Letters alerting some taxpayers that the money they received may have to be repaid. If the taxpayer can’t pay it right away, they may owe thousands in penalties and interest on top of the repayment amount.

Attorney Steven A. Leahy reports on this new IRS development.