The 78th United States secretary of the treasury, Janet Yellen, is very concerned about tax evasion, according to statements she made during an interview with CNBC’s “Squawk Box” that aired on October 5. Yellen claims there’s an “enormous tax gap” and she insists financial information concerning where income derives from can get “hidden.”
Janet Yellen Says ‘Collection of Information Is Routine’
The U.S. secretary of the treasury wants lawmakers to push Biden’s “American Families Plan Tax Compliance Agenda” in order to solve the issue. The proposed legislation, if passed, would require banks to report all inflows and outflows of at least $600 to the IRS.
In mid-September, Bitcoin.com News reported on Janet Yellen and IRS commissioner Charles Rettig asking lawmakers to pass the “American Families Plan Tax Compliance Agenda.” The proposed legislation aims to get all financial institutions to report deposits and withdrawals of $600 or more to the American tax agency, regardless of tax liability. Despite the apparent criticism from banks, privacy activists, and even state treasurers, Yellen has once again defended the idea.
Ostensibly, the Tax Compliance Agenda is aimed at high net-worth individuals according to the Biden administration. The collected information “would be helpful indicators of where it would make sense for auditing to occur,” she claimed. During the interview, Yellen was told that a number of Republican lawmakers believe the legislation is invasive to financial privacy. “Well, of course they do,” Yellen remarked. The secretary of the treasury said that the concept is not anything new.
“Right now, on every bank account that earns more than $10 a year in interest, the banks report the interest earned to the IRS,” Yellen said. “That’s part of the information base that includes W2’s and reports
