by Scott A. Meyer –
The American Families Plan currently being considered by Congress has a dangerous new component that would require banks to significantly expand what they have to report to the IRS, including account balances and all transfers in and out of accounts. The purpose behind the proposed change is to provide more information to the IRS to support increased IRS enforcement actions – probably a result nobody reading this article would welcome.
This could result in IRS audits for transactions that appear to be “income” but in reality are simply transfers for other types of transactions such as home purchases. Imagine a common scenario where you transfer money from one account to another to fund closing. While no income was received, a transaction summary may appear as income to the IRS and result in an audit, wasting valuable time and resources.
You can take action to help prevent this from becoming law. The Independent Community of Bankers of America has set up an easy link for you to create a letter to your congressional representative. Follow this link from the ICBA: https://icba.quorum.us/campaign/IRSprivacy/
And if you have any legal needs for your business, contact Scott Meyer at 469-916-7700 x115 or via email for assistance.
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About Scott A. Meyer
Scott Meyer focuses his practice on Corporate and Intellectual Property matters. His Corporate practice includes a broad spectrum of services including entity formation, business transactions, operational agreements and contracts, sales, acquisitions and mergers of businesses, corporate governance and employment matters.
His Intellectual Property practice includes trademark, licensing and various service agreements for corporations.Read more…