LogFAQs > #962145360

_____Cait posted...

Hasnt this been the norm for a while? They have always demanded people report under the table payments. Now, they are just tracking paypal.

It sucks, but this isnt new.

Yeah, it's not new, and I don't think it explicitly sucks--from the article:

The changes would exempt millions of Americans from the reporting requirement, and help the IRS target wealthier Americans, especially those who earn money from investments, real estate, and other transactions that are more difficult for the IRS to track.

"Under the current system, American workers pay virtually all their tax bills while many top earners avoid paying billions in the taxes they owe by exploiting the system. At the core of the problem is a discrepancy in the ways types of income are reported to the IRS: opaque income sources frequently avoid scrutiny while wages and federal benefits are typically subject to nearly full compliance. This two-tiered tax system is unfair and deprives the country of resources to fund core priorities," Treasury Secretary Janet Yellen said in a statement.

The fact sheet says, "Imagine a taxpayer who reports $10,000 of income; but has $10 million of flows in and out of their bank account. Having this summary information will help flag for the IRS when high-income people under-report their income (and under-pay their tax obligations). This will help the IRS target its enforcement activities on those who are actually evading their tax obligationsdecreasing costly and burdensome audits for the vast majority of taxpayers who pay what they owe."

Sen. Mike Crapo, R-Idaho, was hard-pressed to give an example of an alternative way to close the tax gap other than to say mention closing loopholes.