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1 1 (October 6, 2021)

handle is hein.crs/goveept0001 and id is 1 raw text is: Congressional *aResearch Service The Proposed $600 Bank Reporting Requirement: Frequently Asked Questions October 6, 2021 A proposal to require financial institutions to report information to the Internal Revenue Service (IRS) on personal and business accounts has garnered significant publicity and congressional attention. The proposal is commonly referenced as the new $600 bank reporting requirement. This Insight addresses a number of frequently asked questions about the proposal. What is the proposal and where did it come from? The proposal referenced in media reports was included in the President's FY2022 budget request and is described as being part of a comprehensive financial account information reporting regime. The General Explanations of the Administration's Fiscal Year 2022 Revenue Proposals, which accompanies the President's budget request, states that Financial institutions would report data on financial accounts in an information return. The annual return will report gross inflows and outflows with a breakdown for physical cash, transactions with a foreign account, and transfers to and from another account with the same owner. This requirement would apply to all business and personal accounts from financial institutions, including bank, loan, and investment accounts, with the exception of accounts below a low de minimis gross flow threshold of $600 or fair market value of $600. The General Explanations also mention similar reporting requirements for cryptocurrency and state that payment settlement entities would be covered by the new regime. Additionally, crypto asset exchanges and custodians, as well as crypto transactions exceeding $10,000, would require information reporting. Is the proposal included in legislation? The new $600 bank reporting requirement proposal is not currently a legislative proposal. Some have suggested that it may be considered as Congress develops modifications to either the reconciliation bill (H.R. 5376), known as the Build Back Better Act, or the infrastructure bill (H.R. 3684, as amended and passed by the Senate on August 10, 2021). Congressional Research Service https://crsreports.congress.gov IN11772 CRS INSIGHT Prepared for Members and Committees of Congress

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