The proposed Bank Reporting. . .How will this affect The Hobby?

So they are seriously taslking about getting banks to record and report transactions over $600 to the Federal Government.

If that becomes law, how will it affect Hobbyists?

How will that affect Providers?

To be sure, CASH IS KING but withdrawing cash will be part of the record as will be depositing it.

If what is being suggested is actually true - that being most transactions from financial institutions over $600 will be reported... my suspicion is that it will only be used as evidence in cases drawn to authorities attention for other reasons. There are WAY too many transactions over 600 on a daily basis for each individual one to be manually reviewed by hand.


Now, if there is automated meta analysis... If the system can determine the transactions are consistently cash, and there is a frequent pattern, that may send out a flag for the account and person to be manually reviewed by hand.

If what is being suggested is actually true - that being most transactions from financial institutions over $600 will be reported... my suspicion is that it will only be used as evidence in cases drawn to authorities attention for other reasons. There are WAY too many transactions over 600 on a daily basis for each individual one to be manually reviewed by hand.


Now, if there is automated meta analysis... If the system can determine the transactions are consistently cash, and there is a frequent pattern, that may send out a flag for the account and person to be manually reviewed by hand. Originally Posted by Pangolier

Why would anyone think that the accounts would be reviewed by hand? This is the age of computers. If the government has your account number, they would only have to use that number to make a direct connection to your bank records: then they could make an automatic review of everything. It is only reviewed by hand if the automatic review finds something.

All of the records are in a database. Did you ever ask to see a particular check by number, or amount? It will pop up in a fraction of a second. It is about computer programming.

For years the Government has had an intrusive E Verify program: every employer with any government transactions is required to list the information on every employee. I had avoided it as long as possible, but was several years ago I had to set it up because of a contract requirement. It is a pain in the ass. In addition the employer has been required to communicate with the setup with Microsoft Explorer. I had to get to a Microsoft machine off site, because we use the Mac platform. After setting up the system. I tried to access the program on my Mac and immediately got an alarm, from a security program, that the federal site was trying to access my bank account information. What? I just reached around the back and pulled the ethernet cable off of the computer. For security reasons, I do not use wifi.

The government wants to be able to see the banking information; and they will get it sooner or later. Just don't write a check, or use a credit card, to a company registered as Harlot House.

If the system can determine the transactions are consistently cash, and there is a frequent pattern, that may send out a flag for the account and person to be manually reviewed by hand. Originally Posted by Pangolier

unless the person is claiming self employed/gig worker and being paid cash payments /paypal/cash app and paying taxes on self employment, then there is nothing anyone can do about it ....

All the cash you receive, and that means everything. Should be deposited in the bank into a separate account. Then, you can pay yourself with that money going into a personal account. Pay all of your personal expenses out of the personal account, by check or credit card. You want to document those personal expenses. What dinner is personal?

The good news is that if you are in business, there are a huge amount of things that you can charge to the business: cars, gas, car insurance, car ownership (you own the business - title the car as belonging to the business), business lunches, travel expenses, work clothing, work tools.

The short explanation of this is that I may not even own a home, or an automobile because the businesses own everything.

The next step, that I need to do, is place all of the four companies I own into a Trust; then fund the trust with everything else, including my personal savings accounts and checking accounts. When I die, I want to have absolutely nothing in my own name. The Trust will make the distribution of all assets, not a damn judge.

Guys, understand that the Damn Democrats want to steal everything they can.

unless the person is claiming self employed/gig worker and being paid cash payments /paypal/cash app and paying taxes on self employment, then there is nothing anyone can do about it .... Originally Posted by Randilyn

That's the whole purpose of this supposed legislation if I am understanding what the OP is saying correctly. If you are transacting a large number of cash deposits or withdraws, you'd better be able to prove you have a valid reason why, otherwise you are under the microscope for money laundering, which always leads back to some other kind of illegal activity be it drug trafficking, human smuggling, or anything else...


Some companies such as restaurants are immune from the current SARs regulations because it is expected they are dealing with laws amounts of cash.

As of now, a transaction of $10,000 or more has to be reported by an STM (Suspicious Transaction Memo). They can't keep up with THOSE transactions, who the hell is going to monitor a $600 transaction.

No such plan is in place, anywhere...you either made it up or misread the phony website where you got the information.

By the way, the Federal Government is so depleted with enforcement, the IRS is waaaaaayyyyy behind in everything - refunds are taking months (still waiting on a refund after I filed in February!), audits are virtually non-existent and the tax laws keep changing every week. No one is going to be watching me take $600 out of the ATM - That's just silly!!

So, to answer your question, no change in the hobby will take place.

If you read the fine print in the bill it says they will get info on any account that has more than $600 in transactions it’s not 1 $600 transaction. So no there is no way around them having the ability to see how and where all of your money comes from and goes.

I could see the whole thing being tracked by computers, if one has a habit of making numerous transactions and creating a pattern of behavior that looks like funds are being generated by illegal means......

I know out in Vegas the computer age has caught up with the betting window......the money placed on sporting events is tracked and whenever some team gets an extraordinary amount bet on them compared to normal then red flags go up and they look back at who was making the wagers......it’s tougher to fix a game and then get a boatload of $$$$$ down on it without attracting attention.

If this whole $600 thing goes into effect it will make more sense for hobbyists and providers to use banks less, just keep more cash available, find a safe place to stash it where it won’t get found and stolen and preferably fireproof. Safe deposit boxes are useless because if the govt suspects illegal activity then the deposit boxes are seized and the money confiscated as illegally obtained. There was a case in a nearby state where a bookie had about $300,000 in a safe deposit box.....feds seized it all......my question was who in their right mind ever thought that kind of money should be put where the govt could get at it......yeah, kept the street thugs away from it but not the thugs in blue.

So they are seriously taslking about getting banks to record and report transactions over $600 to the Federal Government.

If that becomes law, how will it affect Hobbyists?

How will that affect Providers?

To be sure, CASH IS KING but withdrawing cash will be part of the record as will be depositing it. Originally Posted by ICU 812

If what is being suggested is actually true - that being most transactions from financial institutions over $600 will be reported... my suspicion is that it will only be used as evidence in cases drawn to authorities attention for other reasons. There are WAY too many transactions over 600 on a daily basis for each individual one to be manually reviewed by hand.


Now, if there is automated meta analysis... If the system can determine the transactions are consistently cash, and there is a frequent pattern, that may send out a flag for the account and person to be manually reviewed by hand. Originally Posted by Pangolier

Lol, they aren't proposing monitoring each transaction. That would be crazy.

https://www.usatoday.com/story/news/...se/8411799002/

If the government has its way we will all be using debit cards.

There will be a loop hole, you can buy a gift card from Walmart or Safeway.

Who needs banks. Buy index funds and dump whatever is left in real estate.
If they won't go after hunter for getting money then you have nothing to worry about.

The IRS is getting 80+Billiuon in the legislation. If they need to build, buy or rent the ghear for a massive NSA-style data base, they will have the m oney.

OF course the data base will support criminal prosicutions for things like the Hobby, but the major thing will be money laundering for crime, but think of the Income Tax implications.

A life style above your reported income level has long been a flag for an audit. Anyone pulling $100 a night in twenty dollar bills as a dancer will be in the crosshairs. So will wait-staff. some do get that much in tips on a good night at a high-end place.

What about traveling providers? All those plaane trips will show up in bank reporting. And the Hobbyists themselves will have a tougher time hiding their frequent donations from the IRS than from their SO.

Call your Congress Representative and Senator.

Lol, they aren't proposing monitoring each transaction. That would be crazy.

https://www.usatoday.com/story/news/...se/8411799002/ Originally Posted by bjtillicum

Thanks for this link. I'll admit I hadn't really looked into it, but did think it sounded ridiculous. This doesn't sound nearly as bad. Like, you could still easily launder all your money, but you better report it and pay your taxes or you're gonna get flagged. Which makes sense. IRS just wants their cut, they don't care if you got it legally or illegally. That's a different departments issue!

You are wrong. Google can help you. This is from the president of my bank:


We would like to make you aware of the proposed legislation currently underway in Washington DC which will have a direct impact on your privacy and your finances. The American Families Tax Plan initiative includes language which would require financial institutions to report gross inflows and outflows over $600 to the IRS on ALL accounts both business and personal.

This means your personal information, account balances, and possibly transaction details would be provided to the IRS electronically every year not only violating your privacy but additionally making your account information susceptible to the more than one billion cyber-attacks directed at the IRS annually.

No such plan is in place, anywhere...you either made it up or misread the phony website where you got the information.
So, to answer your question, no change in the hobby will take place. Originally Posted by Ed Highlight