Biden Wants Banks to Report Account Flows to IRS to Aid Tax Take

President Joe Biden’s American Families Plan is seeking to increase the IRS’s visibility into the financial accounts of high-income taxpayers including owners of small businesses, according to a fact sheet from the Treasury Department.

• The plan would require financial institutions to report aggregate account outflows and inflows into the accounts to the IRS, document says
• This reporting would help the IRS gain visibility into the incomes of partnership investors and sole-proprietors where as much as 55% of taxes owed go unpaid, Treasury says
• “Providing the IRS this information will help improve audit selection so it can better target its ...