Janet Yellen Endorses IRS Plan To Monitor Aggregate Bank Transactions Above $600

Treasury Secretary Janet Yellen expressed her support for the Internal Revenue Services’ plan to track the gross inflow and outflow of Americans’ bank accounts.

In a proposal that many lawmakers are calling a violation of the Fourth Amendment, the Democrats’ pending $3.5 trillion social spending bill would compel banks to report gross inflows and outflows to the IRS for transactions of $600 or more.

Yellen lauded the plan during a recent interview with CNBC’s “Squawk Box.”

“Right now, on every bank account that earns more than $10 a year in interest, the banks report the interest or into the IRS,” she explained. “That’s part of the information base that includes W2s and reports on dividends and other income that taxpayers have earned so collection of information is routine.”

Yellen, however, noted that there is a projected tax gap of $7 trillion over the next decade — a reality that keeps the IRS from collecting “what we believe are owed.” – READ MORE