Right-wing Fox Business host and country singer John Rich had some choice words for President Joe Biden’s agenda on Friday’s edition of America’s Newsroom, complaining – about whatever it takes to boost the conservative network’s ratings – that the commander in chief is tirelessly working to morph the United States from a capitalist dystopia into a communist dystopia.
Anchor Dana Perino, a former White House press secretary under ex-President George W. Bush, had noted to Fox News stooge Bill Hemmer that “critics are slamming President Biden’s new tax plan for what some are calling a financial spying operation. The requirements mean that the IRS would track activities in every single American’s bank account with at least $600 leading to concerns this could destroy financial privacy. Here to weigh in John Rich, country singer of course, and host of The Pursuit with John Rich on Fox Business. They’ve got some good interviews coming up which I want to see, but let me get your take on this, I don’t think people realized that this was in the bill. And this could effect every single American, to be able to look into your bank account for any sort of transaction that you’re doing,” Perino claimed.
“Is that right? Sounds a lot like communism to me. That is verbatim, Dana, what they do in communist China, verbatim,” Rich replied. “That is right out of the playbook in communist China. You ask yourself what have communists ever successfully ruled over in the history of communism? What have they only ever ruled over? Burning piles of destruction, despair, failure, unhappiness. That’s all they’ve ever ruled over. So, you ask yourself, why are people in our government, places of power, who obviously lean communist at least with their policies, why are they doing this? Because this is going to destroy things. Why is our border wide open? Why did we just arm the Taliban in Afghanistan? Why are we devaluing the dollar? Why are we going to spy on everybody’s bank account? Because that brings along with it destruction as you was just laying out. They’ve got to destroy America, Dana, before they can fully control it. And I know that’s a big statement but don’t listen to what they say, watch what they’re doing. This is both sides of the aisle by the way. There’s a lot of Republicans out there that I’ve actually raised money for over the years, that I have supported that I no longer support, because they say one thing and they do another thing and we’re paying for it right now.”
Tax preparation giant H&R Block explains the relationship between the Internal Revenue Service and the bank accounts belonging to American taxpayers:
The IRS probably already knows about many of your financial accounts, and the IRS can get information on how much is there. But, in reality, the IRS rarely digs deeper into your bank and financial accounts unless you’re being audited or the IRS is collecting back taxes from you.
What happens if the IRS wants more details about your bank accounts
In some situations, the IRS will want to know about exact transactions in your bank accounts, or about other accounts that don’t show up on your tax returns or information statements. Most of the time, these inquiries would come from a specific IRS employee during an audit (revenue agent) or a back tax issue (revenue officer).
- The revenue agent would be looking to see if you reported all your income. For example, if the revenue agent auditing you sees unexplained cash deposits in your account, he or she may suspect that you didn’t report all your income on your return.
- In a back tax issue, the IRS revenue officer would be looking at your financial information for assets that you could use to pay off your tax bill or file a late tax return.
The first thing the IRS would do is ask you for these records. If you refuse or don’t provide them by the IRS deadline, the IRS can summons the records directly from your bank or financial institution.
You can contest the summons (called “quashing” the summons) if you can show that the summons isn’t for a legitimate purpose or that the information is irrelevant to the purpose. You can also contest the summons on the grounds that the IRS already has the information.
Because of information statements, the IRS probably already knows about your financial accounts
Here are some examples:
- When you receive more than $10 of interest in a bank account during the year, the bank has to report that interest to the IRS on Form 1099-INT.
- If you have investment accounts, the IRS can see them in dividend and stock sales reportings through Forms 1099-DIV and 1099-B.
- If you have an IRA, the IRS will know about it through Form 5498.
- If you get paid through a merchant account (like PayPal or VISA) and have enough transactions, the IRS will see the amount of these transactions on Form 1099-K.
But expecting a pundit with no political experience other than endorsing fringe candidates to add value to a conversation about a complex issue – like tax law – is a tall order.
Watch below via Media Matters for America:
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Brandon is a political writer for the Hill Reporter specializing in current events, breaking news, and scientific discovery. Brandon holds a Bachelor of Music degree from Indiana University. He lives in New York City.