Potential IRS Rule -- Problem for CRHers?

[blueberra]

Part of the American Families Plan Act of May, 2021 is a provision that requires banks to report all transactions that exceeded $600.
This requirement had been part of the Affordable Care Act (Obamacare) of 2012, but was repealed before the law was put into effect.

Further, financial institutions house a lot of valuable information, and indeed already provide third-party reports to the IRS. Leveraging this information?rather than introducing new requirements for taxpayers55?is a proven way to improve compliance.56
55 As part of the Affordable Care Act, a new provision was introduced which would have required businesses to send Form 1099 information returns for all purchases of goods and services over $600. It was set to go into effect in 2012 but repealed six months prior to enactment because of a concern about the burden imposed on small businesses. National Taxpayer Advocate, 2010. ?Fiscal Year 2011 Objectives Report to Congress.?

What does this proposed regulation have to do with coin roll hunting?
My take is that any time someone orders more than $600 of coins (for example, 2 boxes of halves), the bank would have to report that transaction to the IRS. Same story when you dump more than $600.
I can then foresee banks limiting orders for rolls / boxes and enacting some kind of maximum amount that one may dump in the coin machines, since both kinds of transactions would be subject to IRS reporting which would obviously include one?s social security number.

See links below for further reading.
https://www.cnbc.com/2021/09/02/irs...ren-bank-data-can-help-fight-tax-evasion.html
https://home.treasury.gov/system/files/136/The-American-Families-Plan-Tax-Compliance-Agenda.pdf

 

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[GMan00001]

Yeah, I don't think that's the thing in play here. The article talks about sellers having to report income over $600, and venues like eBay giving them a 1099-K. "Due to a provision in the recently enacted American Rescue Plan Act."

The thread here is about the American Families Plan Act of May, 2021, which is not yet law, and requires banks, not third party vendors, to report transactions over $600.

I didn't notice the one word difference in the name of the act, so my limited research and comments were related to the Rescue Plan not the Families Plan. Sorry for any confusion.

 

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[blueberra]

Theres no transaction when you buy coins from the bank. You're only trading dollar bills for coins.

When I get my weekly box of halves from my bank, I give the teller $500 in cash. The teller deposits that $500 into my savings account then withdraws the same amount from savings to 'buy' the halves. Two transactions every week.
Increase it to two boxes and you can understand the genesis of my original post.

 

[CreakyDigger]

I didn't notice the one word difference in the name of the act, so my limited research and comments were related to the Rescue Plan not the Families Plan. Sorry for any confusion.

Yeah, it's difficult to keep track of all of the horse hockey thrown at us by the Washington DC elites.

 

[fistfulladirt]

Somewhat related, a teller can generate a SAR for any amount in a transaction.

 

[pulltabfelix]

the $600 rule will probably bring the IRS to their knees if they try to check on that vast number of reported transactions. Maybe the banker's lobby will fight it. think of all the work it will cause the bankers. Ouch, they will probably add another level of fees to all of our accounts to pay for all this useless work created by bone head politicians.