Megan L. Brackney was quoted in a recent CBS News article entitled “What’s Inside The Treasury’s Proposal To Track Nearly All Bank Accounts,” published on October 18, 2021. The article describes a recent Treasury proposal that would require banks to report annual gross in-flows and out-flows of most U.S. bank accounts to the Internal Revenue Service. The stated goal of this proposal is to close the so-called “information gap” in tax reporting.
The article notes:
The Treasury estimates that only about 50% of business income is reported, in contrast with employment income, where there’s near-perfect compliance.
“If you earn wages, the IRS can see exactly what you make, and garnish your wages,” said Megan Brackney, a partner at Kostelanetz & Fink. “For higher-income people, the IRS doesn’t have exact information of what they make, and it’s harder to collect tax they owe.”
“Middle-class and low-income taxpayers really suffer when there isn’t tax compliance, particularly among high-net-worth people. I would think that anyone of any political bent would want the wealthy to pay their fair share, not have an opportunity to evade tax.”
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