Decoding the Proposed New Invasive IRS $600 Bank Reporting Rule

However, the new House reconciliation bill would breach that confidentially by allowing the IRS to monitor the bank accounts of virtually every American. The rule would require financial institutions to report cash flows of every account with more than $600 in deposits or transactions.

This is obviously highly invasive and has caused a great furor.
When asked whether the IRS has the means to collect more information about taxpayers and bank accounts including cash flows: “Well, of course, they do,” Treasury Secretary Janet Yellen said. “Right now, on every bank account that earns more than $10 a year in interest, the banks report the interest earned to the IRS. That’s part of the information base that includes W2’s and reports on dividends in other income that taxpayers earned. So the collection of information is routine.”