The Internal Revenue Service (IRS) announced on Monday that it will allow taxpayers to opt out of its facial recognition technology requirement following strong pushback from Americans.
The new statement was released by the IRS on its website Monday morning in response to ongoing privacy and security concerns as taxpayers prepare their tax returns for 2021.
&#8220;The IRS announced today that a new option in the agency’s authentication system is now available for taxpayers to sign up for IRS online accounts without the use of any biometric data, including facial recognition. This is consistent with the IRS’s commitment earlier this month to transition away from the requirement for taxpayers creating an IRS online account to provide a selfie to a third-party service to help authenticate their identity,&#8221; the IRS said in a <a href="https://www.irs.gov/newsroom/irs-statement-new-features-put-in-place-for-irs-online-account-registration-process-strengthened-to-ensure-privacy-and-security" target="_blank" rel="noopener">statement</a>.
&#8220;Taxpayers will have the option of verifying their identity during a live, virtual interview with agents; no biometric data – including facial recognition – will be required if taxpayers choose to authenticate their identity through a virtual interview,&#8221; the statement added.
The response was noted as a short-term solution as the IRS moves away from ID.me as its verification tool. The statement noted the IRS is working to roll out Login.Gov as its future verification tool.
&#8220;Taxpayers will still have the option to verify their identity automatically through the use of biometric verification through ID.me’s self-assistance tool if they choose. For taxpayers who select this option, new requirements are in place to ensure images provided by taxpayers are deleted for the account being created. Any existing biometric data from taxpayers who previously created an IRS Online Account that has already been collected will also be permanently deleted over the course of the next few weeks,&#8221; the statement noted.
The Login.Gov system is expected to be operational by the time taxpayers file 2022 taxes.
&#8220;While this short-term solution is in place for this year’s filing season, the IRS will work closely with partners across government to roll out Login.Gov as an authentication tool. The General Services Administration is currently working with the IRS to achieve the security standards and scale required of Login.Gov, with the goal of moving toward introducing this option after the 2022 filing deadline,&#8221; according to the statement.
The news marks a strong contrast to reports just last month that the IRS would soon force taxpayers to upload a photo to access certain tax tools. The Daily Wire <a href="https://www.dailywire.com/news/bidens-irs-will-make-users-upload-pictures-of-their-faces-to-access-tax-information" target="_blank" rel="noopener">reported</a> on January 20:
<blockquote>“Starting in summer 2022, if you need to login to the IRS’s website to access the Child Tax Credit Update Portal, get your tax transcript or view a payment agreement with the agency, you will need to create an account with third-party identity verification company ID.me,” <a href="https://www.cnbc.com/2022/01/20/irs-will-soon-require-a-selfie-to-access-some-of-its-online-tools.html">CNBC</a> reported. “A simple username and password will no longer suffice: You will need to provide a government document with a photo, such as a driver’s license, state ID or passport, and take a video selfie with your smartphone or computer.”
An IRS spokesperson told CNBC that taxpayers can still pay or file their taxes “without submitting a selfie or other information to a third-party identity verification company” by using bank accounts, credit cards, and similar means. However, CNBC again emphasized that doing the aforementioned “basic things” — as well as “applying for payment plans” and “monitoring stimulus checks” — will require facial identification.</blockquote>
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IRS To Allow Taxpayers To Opt Out Of Facial Recognition After Strong Pushback

Internal Revenue Service (IRS)

Taxes

The Internal Revenue Service revealed that it would adjust federal income tax brackets and deductions in light of rising price levels in the United States.
On Wednesday, the Department of Labor <a href="https://www.dailywire.com/news/breaking-bidenflation-price-increases-soar-to-30-year-high-outpace-economist-predictions">announced</a> that year-over-year inflation for consumer prices reached 6.2% in October — the highest increase in thirty years. Prices for fuel, used vehicles, and food saw significant increases.
Also on Wednesday, the IRS <a href="http://newsroom">raised</a> income tax rate thresholds for tax year 2022 to prevent “<a href="https://taxfoundation.org/tax-basics/bracket-creep/">bracket creep</a>” — defined by the Tax Foundation as inflation pushing taxpayers into higher income tax brackets or reducing the value of credits, deductions, and exemptions, resulting in higher taxes without higher income.
<a href="https://www.foxbusiness.com/economy/tax-brackets-2022-inflation-irs">Fox Business</a> reports that most of the tax rates rose by 3% — the largest increase in four years.
For individual filers, the brackets are as follows:
<ul>
<li style="font-weight: 400;">10% — Income up to $10,275</li>
<li style="font-weight: 400;">12% — Income between $10,275 and $41,775</li>
<li style="font-weight: 400;">22% — Income between $41,775 to $89,075</li>
<li style="font-weight: 400;">24% — Income between $89,075 to $170,050</li>
<li style="font-weight: 400;">32% — Income between $170,050 to $215,950</li>
<li style="font-weight: 400;">35% — Income between $215,950 to $539,900</li>
<li style="font-weight: 400;">37% — Income over $539,900</li>
</ul>
For joint filers, the brackets are as follows:
<ul>
<li style="font-weight: 400;">10% — Income up to $20,550</li>
<li style="font-weight: 400;">12% — Income between $20,550 to $83,550</li>
<li style="font-weight: 400;">22% — Income between $83,550 to $178,150</li>
<li style="font-weight: 400;">24% — Income between $178,150 to $340,100</li>
<li style="font-weight: 400;">32% — Income between $340,100 to $431,900</li>
<li style="font-weight: 400;">35% — Income between $431,900 to $647,850</li>
<li style="font-weight: 400;">37% — Income over $647,850</li>
</ul>
For individuals, the standard deduction rose by $400 — from $12,550 to $12,950. For married couples, the standard deduction rose by $800 — from $25,100 to $25,900.
After nearly two years of aggressive monetary stimulus, the Federal Reserve <a href="https://www.dailywire.com/news/as-high-inflation-persists-federal-reserve-unveils-first-official-plan-to-roll-back-stimulus">revealed</a> last week that it would begin tapering its $120 billion in monthly asset purchases by $15 billion per month. According to a Federal Open Market Committee statement:
<blockquote>In light of the substantial further progress the economy has made toward the Committee’s goals since last December, the Committee decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities.
The Committee judges that similar reductions in the pace of net asset purchases will likely be appropriate each month, but it is prepared to adjust the pace of purchases if warranted by changes in the economic outlook. The Federal Reserve’s ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.</blockquote>
Inflation in the United States — which many economists believe to be heightened by fiscal and monetary stimulus — is having tangible effects on Americans’ living expenses.
According to AAA’s National Average Gas Prices tracker, the <a href="https://www.dailywire.com/news/gas-prices-have-risen-by-1-25-per-gallon-since-last-year">price</a> for a tank of regular gas was $3.40 as of October 29; one year ago, the average was $2.14. The price of diesel fuel has also increased significantly — from $2.37 last year to $3.63 today.
The United States Energy Information Administration recently <a href="https://www.dailywire.com/news/heating-bills-could-surge-30-this-winter-energy-department-warns">forecasted</a> the largest winter heating price increase in thirteen years; nearly half of American homes dependent upon natural gas will foresee 30% higher expenditures than last year’s winter.
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The U.S. Treasury Building

IRS Adjusts Tax Brackets As Inflation Hits 30-Year High

Inflation

The U.S. Supreme Court in the 1968 case of Terry v. Ohio granted police officers the limited right to stop and ask questions of someone engaged in unusual behavior and reasonably believed to be armed and presently dangerous. If the answers given do not dispel an officer&#8217;s reasonable concern for safety, he may inspect the outer garments of the individual for weapons. Commonly called Terry stops or &#8220;stop-and-frisk,&#8221; these became routine in New York City in the &#8217;90s. Now Democrats intend to deploy them to your bank account. We are all suspects now.
Former New York City Mayor Michael Bloomberg argued New York&#8217;s stop-and-frisk policy directly cut down on crime. At a 2015 Aspen Institute event, Bloomberg defended the program, saying, &#8220;Ninety-five percent of murders — murderers and murder victims — fit one M.O. You can just take the description, Xerox it, and pass it out to all the cops. They are male, minorities, 16-25. That&#8217;s true in New York. That&#8217;s true in virtually every city. And that&#8217;s where the real crime is. You&#8217;ve got to get the guns out of the hands of people that are getting killed. So you want to spend the money on a lot of cops in the streets. Put those cops where the crime is, which means in minority neighborhoods. So one of the unintended consequences is people say, &#8216;Oh my God, you are arresting kids for marijuana that are all minorities.&#8217; Yes, that&#8217;s true. Why? Because we put all the cops in minority neighborhoods. Yes, that&#8217;s true. Why do we do it? Because that&#8217;s where all the crime is. And the way you get the guns out of the kids&#8217; hands is to throw them up against the wall and frisk them.&#8221;
Members of Congress, the president and the Internal Revenue Service are increasingly concerned that you are now committing tax fraud against the federal government, and they want your banks to throw you against the wall and frisk you. A lot of Americans deal in cash or with apps that digitally transfer funds between people. They then deposit the funds into bank accounts. From hairdressers to housekeepers and from drivers to plumbers, everyone is now a suspected tax cheat. Like stop-and-frisk, this will disproportionately impact minorities and white blue-collar workers, all of whom participate more significantly in the gig economy than college-educated white voters.
In a letter to Congress, the Biden administration stated it wants to, in the words of the Wall Street Journal, &#8220;require banks to report annual inflows and outflows from bank accounts with at least $600 or at least $600 worth of transactions.&#8221; The requirement would also apply to services like Venmo, Cash App, and Apple Pay — services used by individuals to pay each other. It amounts to a financial stop-and-frisk program where every American is a suspect, but the little guy is the chief suspect.
Last month, House Democrats pulled the measure from their reconciliation plan, but Speaker Nancy Pelosi says the measure is still on the table. She defended the proposal last week, saying, &#8220;Yes, there are concerns that some people have, but if people are breaking the law and not paying their taxes, one way to track them is through the banking measure.&#8221;
While Democrats have pitched the plan as a way to target the rich, it very clearly goes after gig economy workers. They would not include services like Venmo if it did not. The Democrats and the IRS are convinced middle class Americans are not paying their fair share of taxes. Because they are convinced you are lying, they want your financial institutions to stop-and-frisk your finances on the government&#8217;s behalf.
There are undoubtedly people not fessing up to their revenue. But Congress has assured us no one who makes less than $400,000 a year will be burdened by their plans. That has already been proven to be a lie, but this latest intrusion and invasion of privacy into our lives shows just how pervasive the Democrats want government to be and how much Democrats do not really trust the American people.
The views expressed in this piece are the author&#8217;s own and do not necessarily represent those of The Daily Wire.
To find out more about Erick Erickson and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.
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Security camera

ERICKSON: Financial ‘Stop-And-Frisk’ Is Coming Soon

Democrats

Treasury Secretary Janet Yellen expressed her support for the Internal Revenue Services’ plan to track the gross inflow and outflow of Americans’ bank accounts.
In a proposal that many lawmakers are calling a violation of the Fourth Amendment, the Democrats’ pending $3.5 trillion social spending bill would <a href="https://www.dailywire.com/news/biden-dems-want-to-monitor-americans-bank-accounts-blasted-as-violating-4th-amendment">compel</a> banks to report gross inflows and outflows to the IRS for transactions of $600 or more. 
Yellen lauded the plan during a recent interview with CNBC’s “<a href="https://www.cnbc.com/2021/10/05/cnbc-exclusive-cnbc-transcript-united-states-treasury-secretary-janet-yellen-speaks-with-cnbcs-squawk-box-today.html">Squawk Box</a>.”
“Right now, on every bank account that earns more than $10 a year in interest, the banks report the interest or into the IRS,” she explained. “That’s part of the information base that includes W2s and reports on dividends and other income that taxpayers have earned so collection of information is routine.”
Yellen, however, noted that there is a projected tax gap of $7 trillion over the next decade — a reality that keeps the IRS from collecting “what we believe are owed.”
“It comes from places where the information on income is opaque and can be hidden,” she said. “And a simple way for the IRS to get a sense of where that might be is just a few pieces of information about individuals’ bank accounts, nothing at the transaction level that would violate privacy, simply aggregate inflows into the account over the year and aggregate outflows. That would really help the IRS target their auditing resources.”
“So, it is not reporting of individual transactions or anything of the like, and it would be a simple thing for banks and other payment providers to provide along with the other information they’re already providing.”
Several Republican governors and state treasurers have <a href="https://www.dailywire.com/news/mushrooming-number-of-gop-states-will-not-comply-with-bidens-irs-snoop">announced</a> that they will resist the Democrats’ plan.
“I will stand up to this government overreach and protect the privacy of those account holders,” said Missouri state treasurer Scott Fitzpatrick. “Turning over their transaction data to the federal government is illegal under Missouri law and a gross violation of Missourians’ expectation of privacy when it comes to their personal financial records. I will not turn this information over to the IRS voluntarily and will fight in court to block any attempt by the federal government to compel my office to comply with this mandate.”
“It would be absolutely absurd for me to turn over their private account data regarding money they’re saving for their loved ones’ future to the IRS, and I do not intend to do so,” added Arkansas state treasurer Dennis Milligan. “I would do all I could in my role to not comply with this proposal.”
This article has been revised for clarity. 
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Janet Yellen Endorses IRS Plan To Monitor Aggregate Bank Transactions Above $600

Janet Yellen

President Biden and the Democrats’ $3.5 trillion budget plan means to monitor gross inflows and outflows from Americans’ bank accounts, prompting concern that the federal government would be willfully violating the 4th Amendment.
&#8220;The proposal would require banks to report to gross inflows and outflows to the IRS, including transactions from Venmo, PayPal, crypto exchanges and the like in an effort to fight tax evasion,” the <a href="https://www.dailymail.co.uk/news/article-9973671/Bidens-plan-let-IRS-SNOOP-bank-accounts.html">Daily Mail</a> noted, adding, “The IRS would know how much money is in an individual&#8217;s bank account in a given year, whether the individual earned income on that account and exactly how much was going in an and out.”
Patrick Hedger, vice president of policy at the Taxpayers&#8217; Protection Alliance, blasted the idea, saying, “The IRS is first and foremost, a law enforcement agency and the Fourth Amendment protects against unreasonable searches and seizures in pursuit of, of looking for wrongdoing and criminal actions, so I think this is going to run into severe Fourth Amendment headwinds.”
He added:
<blockquote>You&#8217;re going to push more folks into small cash transactions, you&#8217;re going to push more banking offshore &#8230; the big fish out there that do have sizable assets that are that are eligible for taxation offshore. This is the ultimate regressive tax. You&#8217;re going to end up punishing the worst off among us &#8230; the lower income folks in this country have historically been the targets of aggressive IRS audits because they don&#8217;t have the CPAs and the lawyers to be able to fight back.  I don&#8217;t see why they need to be going after people, you know, just the average, the average Joe and start stooping on, you know, a $600 payment. It doesn&#8217;t make any sense, these, this is, I mean this is beyond trying to pick out low hanging fruit.</blockquote>
A group including the American Bankers Association, the Bank Policy Institute, the Consumer Bankers Association <a href="https://bpi.com/wp-content/uploads/2021/06/Joint-SfR-Senate-Finance-Subcommitte-Hearing-on-Closing-the-Tax-Gap-051021.pdf">wrote</a> to the Senate Subcommittee on Finance:
<blockquote>This proposal will have real costs, not only for government, but also for financial institutions, small businesses, and individual taxpayers. … Considering all the existing tax and other compliance reporting responsibilities already borne by the financial services industry, we have serious reservations regarding the efficacy of yet another reporting requirement.
… assuming taxpayers have a responsibility to “reconcile” whatever information is provided to them and the IRS by financial institutions, this new reporting structure could create a significant burden on individuals and businesses subject to the requirement – the majority of whom will have nothing inherently suspicious about their returns.
Given the substantial burden that this proposed reporting requirement would create on businesses, individual taxpayers and financial institutions, it is imperative that the benefits of implementation materially outweigh the costs and risk associated with this large scale collection of sensitive personal financial information.</blockquote>
On July 1, The Taxpayer Protection Alliance <a href="https://www.protectingtaxpayers.org/congress/tpa-sends-letter-urging-opposition-to-irs-funding-in-the-infrastructure-deal/">published a letter</a> opposing the Biden administration giving the IRS an extra $40 million in the latest infrastructure agreement. They wrote:
<blockquote>While billed by proponents of the deal as beefing up “enforcement,” the agency’s recent actions have given the American people no reason to believe this infusion of funds would be spent wisely. …  
In 2013, the nation discovered that the IRS had targeted certain groups – a number of whom have co-signed this letter – for increased audit scrutiny based on their political beliefs. … In 2017, the IRS settled the lawsuit against them, admitting their actions were wrongful. Despite this admission, there is little indication the IRS has learned its lesson. In just the last month, agency employees illegally leaked the tax information of private individuals to the media. Given the prominence of the individuals whose records were released, there is little doubt this move was politically motivated. …
The new money dedicated to the IRS under the infrastructure plan would involve the agency intensifying their focus on certain groups. Given the agency’s history and even most recent actions, this should concern the nation.</blockquote>
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Joe Biden Holds Official Presidential Campaign Kickoff Rally In Philadelphia

Biden, Dems Want To Monitor Americans’ Bank Accounts, Blasted As Violating 4th Amendment

Banks

Joe Biden

Several Republican members of Congress accused the Internal Revenue Service (IRS) last week of blatant political bias by denying tax-exempt status to a Christian nonprofit, and warned the decision could set a precedent for taxing churches.
In May, the IRS <a href="https://www.dailywire.com/news/christian-non-profit-rejected-for-tax-exempt-status-by-irs-bibles-teachings-affiliated-with-the-republican-party" target="_blank" rel="noopener noreferrer">denied</a> a request for tax-exempt status from the Texas-based group <a href="https://christiansengaged.org" target="_blank" rel="noopener noreferrer">Christians Engaged</a>, <a href="https://firstliberty.org/wp-content/uploads/2021/06/Christians-Engaged-IRS-Determination-Letter_Redacted.pdf">stating</a> that the “Bible’s teachings are typically affiliated with the Republican Party and candidates.”
The <a href="https://roy.house.gov/sites/roy.house.gov/files/Sent_Bicameral%20Roy%20Letter%20to%20IRS_Christians%20Engaged_6.25.21.pdf" target="_blank" rel="noopener noreferrer">letter of rebuke</a>, sent by Rep. Chip Roy (R-TX) and signed by 14 other members of Congress including Sens. Ted Cruz (R-TX) and Marco Rubio (R-FL), urged IRS Commissioner Charles P. Rettig to personally review the case and terminate those who were involved in the decision.
&#8220;We write today to express extreme concern regarding a recent Internal Revenue Service (IRS) determination on the tax-exempt status of Christians Engaged, a nonprofit organization in Texas. We urge you to personally review this determination, and remove the individual, or individuals, responsible for the blatantly biased, discriminatory, and flawed reasoning that led to that determination,&#8221; the letter began.
The letter went on to single out IRS Director of Exempt Organizations Stephen Martin, who sent a letter claiming Christians Engaged was ineligible for tax-exempt status under Section 501(c)(3) because it is &#8220;engaged in prohibited political campaign intervention.&#8221;
&#8220;Specifically, Mr. Martin alleges that Christians Engaged&#8217;s &#8216;&#8230;bible teachings are typically affiliated with the [Republican] party and candidates,'&#8221; the letter continued. &#8220;Among the issues that the IRS determined to be &#8216;associated with political party platforms&#8217; were &#8216;the sanctity of life, the definition of marriage, and biblical justice.&#8217; These issues have always been at the core of Christian belief and classifying them as inherently political is patently absurd.&#8221;
&#8220;If the IRS applied this interpretation broadly, it would jeopardize the tax-exempt status of thousands of Christian churches across the country,&#8221; the members of Congress warned.
Related: <a href="https://www.dailywire.com/news/were-not-ready-pastor-andrew-brunson-predicts-worsening-religious-persecution-in-u-s-regardless-of-election-outcome" target="_blank" rel="noopener noreferrer">‘We’re Not Ready’: Pastor Andrew Brunson Predicts Worsening Religious Persecution In U.S. Regardless Of Election Outcome</a>
Last week, four Republican members of Congress <a href="https://www.dailywire.com/news/unconscionable-gop-colleagues-sound-off-on-rep-huffman-for-threatening-tax-exempt-status-of-catholic-church" target="_blank" rel="noopener noreferrer">denounced</a> Rep. Jared Huffman (D-CA) to The Daily Wire after he suggested the Catholic Church should be punitively stripped of its tax-exempt status after the United States Conference of Catholic Bishops (USCCB) voted to draft a document that could rebuke pro-abortion Catholic politicians.
“If they’re going to politically weaponize religion by ‘rebuking’ Democrats who support women’s reproductive choice, then a ‘rebuke’ of their tax-exempt status may be in order,” Huffman tweeted, as The Daily Wire <a href="https://www.dailywire.com/news/house-democrat-suggests-stripping-catholic-church-of-tax-exempt-status-if-biden-denied-communion" target="_blank" rel="noopener noreferrer">reported</a>.
Rep. Doug Lamborn (R-CO), who was a signatory to Roy&#8217;s letter, told The Daily Wire regarding Huffman&#8217;s comments: “It is unconscionable that House Democrats are attempting to scare churches into silence simply because they are angry over their pro-life religious views. Religious organizations should have an absolute right to express their First Amendment rights without fear of persecution from the IRS or federal government. Rep. Huffman’s threat to remove the USCCB’s tax-exempt status must be refuted. Religious institutions deserve our respect, and they deserve the freedom to express their beliefs.”
Related: <a href="https://www.dailywire.com/news/unconscionable-gop-colleagues-sound-off-on-rep-huffman-for-threatening-tax-exempt-status-of-catholic-church" target="_blank" rel="noopener noreferrer">‘Unconscionable’: GOP Colleagues Sound Off On House Democrat For Threatening Tax-Exempt Status Of Catholic Church</a>
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The Internal Revenue Service (IRS) building in Washington, D.C., U.S., on Saturday, June 26, 2021.

Members Of Congress Blast IRS For Denying Tax-Exempt Status To Christian Nonprofit, Warn Taxing Churches Could Be Next

Christianity

Congress

Religion

The Internal Revenue Service (IRS) is looking to increase their power to regulate the cryptocurrency industry, asking Congress for the authority to access and collect data on its use and users, according to IRS Commissioner Charles Rettig.
During a Senate Finance Committee <a href="https://www.finance.senate.gov/hearings/the-irss-fiscal-year-2022-budget">hearing</a> on Tuesday, Rettig said, &#8220;I think we need congressional authority.” 
“We get challenged frequently, and to have a clear dictate from Congress on the authority of us to collect that information is critical,” he added.
Looking to clamp down on the comparatively under-regulated market, “The Biden administration has proposed requiring cryptocurrency brokers, including exchanges, to report information on their customers, including on indirect foreign investors. It would also require businesses to report when they receive crypto assets valued at more than $10,000,” explained <a href="https://www.bloomberg.com/news/articles/2021-06-08/irs-chief-asks-congress-for-authority-to-get-cryptocurrency-data?sref=ExbtjcSG">Bloomberg</a>.
As reported by <a href="https://www.reuters.com/business/us-irs-chief-says-needs-congressional-authority-cryptocurrency-reporting-2021-06-08/">Reuters</a>, Rettig “said cryptocurrency market capitalization is over $2 trillion, with more than 8,600 exchanges worldwide,” and that &#8220;and by design, most crypto virtual currencies are designed to stay off the radar screen.&#8221; 
According to Bloomberg, Rettig continued to explain that “The IRS currently issues summonses to third parties to get information on cryptocurrency users, without naming specific individuals,” and that the agency is “also active in both civil and criminal enforcement,” but “needs additional tools and resources from Congress.”
As the Biden administration seeks to increase spending, the volatile cryptocurrency market has been viewed by the Biden administration as another potential source of capital gains tax income; Reuters noted, &#8220;The Biden administration has targeted the volatile crypto asset markets for capital gains tax collections.&#8221; That agenda would join the additional goal of cracking down “on illicit uses of such digital currencies, which have been demanded increasingly by perpetrators of ransomware attacks on corporate computer networks.”
As <a href="https://www.theverge.com/2021/6/8/22524705/irs-congress-cryptocurrency-exchanges">The Verge</a> noted, “Proposed legislation regulating the industry has been piling up, especially since Biden took office.” 
For example, in December, “the Financial Crimes Enforcement Network (FinCEN) proposed requiring exchanges to report information (like names, for instance) connected to private anonymous crypto wallets exchanging over $10,000 in a day,” while also proposing “similar “know-your-customer” requirements on international transactions.”
The request for added cryptocurrency-related power came during a Senate Finance Committee hearing on the IRS’s proposed Fiscal Year 2022 <a href="https://www.finance.senate.gov/hearings/the-irss-fiscal-year-2022-budget">budget</a>. 
The effort to regulate and tax cryptocurrency in the U.S. comes as part of a raging debate over the part currencies such as Bitcoin can play in domestic and international markets. China, for example, is looking to push their own state-regulated digital currency, and is therefore arguably engaging in an assault on cryptocurrencies. Just <a href="https://www.dailywire.com/news/judgement-day-for-crypto-with-eyes-on-digital-currency-china-continues-assault-on-cryptocurrency-blocks-social-media-crypto-accounts">days ago</a>, multiple “key opinion leader” social media accounts which discussed cryptocurrencies were banned, described as “Judgement Day for crypto KOL,” according to one censored user.
Weeks prior, further Chinese legislative action triggered a crash in the cryptocurrency market, with the market cap losing nearly $1 trillion.
<a href="https://finance.yahoo.com/news/bitcoin-ethereum-plunge-crypto-market-134615617.html">Yahoo! Finance</a> explained in mid-May that the sharp decline followed China’s decision to ban “financial and payment institutions from providing cryptocurrency services.” According to the <a href="https://www.bbc.com/news/business-57169726">BBC</a>, the communist regime also “warned investors against speculative crypto trading.”
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Charles P. Rettig

IRS Asks Congress For Authority To Collect Cryptocurrency Information

Bitcoin

Cryptocurrency

Democrats are making good on their promise to investigate President Donald Trump&#8217;s finances, despite Special Counsel Robert Mueller&#8217;s finding that the Trump 2016 presidential campaign did not collude with Russian officials to affect the outcome of the 2016 presidential election.
Late Wednesday, House Ways and Means Committee Chairman Richard Neal (D-MA) announced that he has formally requested that the IRS turn over at least six years worth of Donald Trump&#8217;s personal tax returns &#8212; those returns filed between 2013 and 2018. <a href="http://cdn.cnn.com/cnn/2019/images/04/03/neal.letter.to.rettig.signed.2019.04.03.pdf">According to his official letter to Treasury Secretary Steve Mnuchin</a> made public Thursday morning, Neal has also requested financial documents related to Trump&#8217;s trusts, holding and acquisition companies, and his Bedminster, New Jersey golf club.
Neal has apparently done his research; he made the request under a little-known statute, Internal Revenue Code 6103(f), that allows the Chair of the House Committee on Ways and Means (or the chair of any finance committee in Congress), specifically, to request the personal tax records of any individual, provided that, once produced, they are kept secret and confidential.
There&#8217;s a catch on the confidentiality, too: if the records make their way to regular members of Congress, who end up reviewing them, the seal of confidentiality is broken, and Trump&#8217;s records could then be made public, <a href="https://www.foxnews.com/politics/judge-andrew-napolitano-democrats-can-legally-obtain-and-publicize-trumps-tax-returns">according to Fox News</a> legal expert, Judge Andrew Napolitano.
<a href="https://www.cnn.com/2019/04/04/politics/donald-trump-tax-returns-unseen-secret/index.html">Even CNN describes the request</a> as &#8220;rooted in a legal technicality.&#8221;
Trump brushed off the request Thursday, <a href="https://www.cnn.com/2019/04/03/politics/trump-tax-returns-house-democrats-request/index.html">telling reporters</a>, &#8220;Is that all? Oh, usually it&#8217;s 10 so I guess they&#8217;re giving up.&#8221;
He added that he does not believe the Treasury Secretary or the IRS has to provide Congress with his tax returns so long as he is under audit, as he currently claims to be.
&#8220;Now, we&#8217;re under audit, despite what people said. We&#8217;re working that out as &#8212; I&#8217;m always under audit it seems. But I&#8217;ve been under audit because the numbers are big and I guess when you have a name you&#8217;re audited. But until such time as I&#8217;m not under audit I would not be inclined to do that,&#8221; Trump added.
Neal told CNN that he believes his request will be fulfilled, though perhaps not without a fight.
&#8220;I am certain we are within our legitimate legislative, legal and oversight rights,&#8221; Neal said in a statement emailed to news outlets, adding that his request is about &#8220;policy not politics.&#8221;
&#8220;My preparations were made on my own track and timeline, entirely independent of other activities in Congress and the administration,&#8221; Neal added. &#8220;My actions reflect an abiding reverence for our democracy and our institutions, and are in no way based on emotion of the moment or partisanship. I trust that in this spirit, the IRS will comply with federal law and furnish me with the requested documents in a timely manner.&#8221;
Of course, such a suggestion &#8212; that Neal&#8217;s motivation has nothing to do with partisanship &#8212; seems patently false. Democrats have been promising a full investigation into Donald Trump&#8217;s finances since Trump first took office, and activist groups have only clamored more forcefully for Trump&#8217;s tax returns in the wake of the Mueller report, which dashed their hopes of a quick and easy impeachment.
Democrats in the House have made multiple requests for Trump&#8217;s taxes as well, and both Rep. Adam Schiff (D-CA) and Rep. Maxine Waters (D-CA) have said they will issue subpoenas not just to the IRS but to various banks that had dealings with Trump and his companies.

Democrats Make Good On Threat, Demand Six Years Of Trump Tax Returns

Democratic Party

Donald Trump

Steve Mnuchin

The Southern Poverty Law Center (SPLC) is already facing internal allegations of racism and sexism, but now the organization&#8217;s non-profit status has been called into question by Sen. Tom Cotton (R-AR).
In <a href="https://www.cotton.senate.gov/files/documents/2019%20SPLC%20Cotton%20Letter%20VF.pdf">a letter</a> sent Tuesday to IRS Commissioner Charles Rettig, Cotton requested an investigation into the organization&#8217;s classification as a 501(c)(3), accusing SPLC of &#8220;fundrais[ing] off of defamation.&#8221;
&#8220;This business model has paid well. The SPLC has accrued more than $500 million in assets,&#8221; Cotton wrote. &#8220;According to the group&#8217;s most recent financial statement, it holds $121 million offshore in non-U.S. equity funds. The SPLC uses these assets to pay its executives lavish salaries far higher than the comparable household average.&#8221;
Cotton suggested the organization&#8217;s tax-exempt status be investigated over the money as well as the racism and sexism charges, writing that taxpayer dollars should be protected &#8220;from a racist and sexist slush fund devoted to defamation.&#8221;
Cotton goes on to explain how the SPLC engages in defamation, by claiming its &#8220;hate map,&#8221; which includes nearly universally accepted examples such as the Ku Klux Klan, also includes &#8220;mainstream political opponents and faith-based groups,&#8221; such as the Family Research Council and the Alliance Defending Freedom. The Arkansas senator also pointed to the group&#8217;s claim that Ayaan Hirsi Ali is an &#8220;anti-Muslim extremist&#8221; because she speaks out against issues relating to Islam such as forced marriage and female genital mutilation (Ali herself is a former Muslim).
The group also had to pay Maajid Nawaz, a British political activist, $3.375 million after he sued for defamation.
&#8220;The SPLC&#8217;s defamation has not just damaged the reputation of these mainstream organizations and individuals by lumping them in with the Ku Klux Klan and Nation of Islam; it has resulted in injury and the threat of the loss of life, including an attempted mass murder,&#8221; Cotton wrote before reminding the IRS of a 2012 incident where Floyd Lee Corkins targeted the FRC because of the SPLC&#8217;s designation. A security guard was injured in the shooting but thankfully no one died.
&#8220;Perhaps the SPLC was founded for noble purposes and decades ago performed some good work, but what is left of the SPLC is no longer operating in a manner consistent with IRS guidelines and applicable law,&#8221; Cotton concluded.
Last week, as issues surrounding the group&#8217;s racism and sexism scandals made headlines, SPLC Board Member Bryan Fair posted an article on the organization&#8217;s website that explained what the group was spending so much money on. He cited several court cases where the SPLC is fighting against President Donald Trump&#8217;s policies in addition to other legal battles.
Fair also said the SPLC had hired 200 additional people since Trump&#8217;s election and opened four new offices in the &#8220;Deep South.&#8221;
In recent weeks, SPLC co-founder Morris Dees and President Richard Cohen have both resigned, along with others in leadership positions. The Daily Signal <a href="https://www.dailysignal.com/2019/04/02/tech-giants-run-silent-as-shake-up-hits-southern-poverty-law-center/">reported</a> that tech giants &#8212; except for Twitter and Facebook &#8212; did not respond to inquiries about their partnerships with the SPLC amid the growing scandals. Twitter said the organization is not on its Trust and Safety Council and has not been a recent partner of SPLC. Facebook said that no single outside group defines their policies.
Full Disclosure: I previously worked for the Heritage Foundation, which publishes the Daily Signal. I have several articles published under the Daily Signal banner.

SPLC Non-Profit Status Questioned By GOP Senator Amid Racism, Sexism Allegations

Racism

Sexism

Southern Poverty Law Center (SPLC)

Women who exchange nude videos, photos, and other sex-related services online for goods and money are apparently being mass-reported to the IRS by the so-called &#8220;thot crusade&#8221; or &#8220;thot police&#8221; for not paying taxes on their income. A flurry of so-called &#8220;cam girls&#8221; and &#8220;sex workers&#8221; complained and warned others in the field about the reporting while men doing the alleged reporting encouraged others to do the same and set up a Facebook page called &#8220;<a href="https://www.facebook.com/Sex-Worker-Revenue-Service-2164278623786476/">Sex Worker Revenue Service</a>.&#8221;
A &#8220;thot,&#8221; according to Dictionary.com, is &#8220;a woman considered to be sexually provocative or promiscuous; a slut or whore.&#8221; Thot is an acronym for &#8220;that h** over there.&#8221; &#8220;Cam girls&#8221; are women on the internet who exchange nude photos or sexually-natured videos for goods or money.
A viral <a href="https://m.facebook.com/story.php?story_fbid=722973838079026&amp;id=100010992481290">Facebook post</a> from cam girl Alice Mae warned fellow sex workers about the man supposedly behind the mass reporting to the IRS, David Wu. &#8220;This guy is reporting girls [sic] premium snapchat and has reported 10 girls to the IRS. &#8230; First of all, the IRS does not need any help to find out if you are not paying your taxes &#8230; Second of all, [sex workers] are always paying their taxes,&#8221; she wrote in the post, before plugging her services and her Patreon account.
Wu&#8217;s Facebook intro reads, &#8220;Please report &#8216;sex-workers&#8217; to the IRS or the local law-enforcement, thank you!&#8221; His Facebook page includes posts bragging about reporting sex workers. In a video post, for example, Wu superimposed his face on a male figure in a video game dismembering a female figure labeled &#8220;sex workers.&#8221; Here&#8217;s another example:
<div class="embed"><iframe allow="encrypted-media" frameborder="0" height="594" width="500"></iframe></div>
The Daily Wire reached out to Wu for comment but did not receive a response in time for publication.
In a <a href="http://boards.4chan.org/pol/thread/194403628?fbclid=IwAR3R-X59Z1qWTk45soaRMUCnePcRNnDxa9OejTjol9KxCdxSc0u_61uC14A#bottom">4Chan thread</a> started on Friday, users were encouraged to &#8220;report all twitch thots/premium snapchat sluts/etc. etc. to the IRS for tax audit, do your duty as an American citizen to report any tax evaders.&#8221;
&#8220;Report all camw***** no matter where they are hosted,&#8221; said one user. &#8220;I f***ing love this. keep calling us incels you c****,&#8221; wrote another.
&#8220;Incel&#8221; is a mocking term for the &#8220;involuntarily celibate.&#8221;
According to the official website for the <a href="https://www.irs.gov/">IRS</a>, individuals who successfully report tax evasion are eligible for a reward:
<div>
<blockquote>
The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects.
</blockquote>
</div>
Some sex workers complained about the reporting and dubiously claimed sex workers are generally exempt from paying taxes on such income.
&#8220;PSA to all sex workers, dancers, FSSW, 18+ Snapchatters: You DO NOT have to pay taxes in the US until you make more than $20,000 a year. Don&#8217;t worry about incels reporting you to the IRS because they actually can&#8217;t do anything without digital proof of your income,&#8221; said one account called &#8220;protect sex workers.&#8221;
<div class="embed tweet">
<blockquote class="twitter-tweet" data-lang="en">
PSA to all sex workers, dancers, FSSW, 18+ Snapchatters: You DO NOT have to pay taxes in the US until you make more than $20,000 a year. Don&#8217;t worry about incels reporting you to the IRS because they actually can&#8217;t do anything without digital proof of your income.
&#8212; PROTECT SEX WORKERS (@DammieItsCammie) <a href="https://twitter.com/DammieItsCammie/status/1066355225760534528?ref_src=twsrc%5Etfw">November 24, 2018</a></blockquote>
</div>
However, according to the IRS, this is untrue. Self-employed cam girls would have to file a tax return if they exceed just $400 in net earnings. &#8220;You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions (PDF),&#8221; <a href="https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center">says</a> irs.gov.
Cam girls &#8220;Kandi Curves&#8221; and &#8220;Mistress Nicci&#8221; mocked the &#8220;incels&#8221; allegedly reporting sex workers:
<div class="embed tweet">
<blockquote class="twitter-tweet" data-lang="en">
You must not follow many <a href="https://twitter.com/hashtag/camgirls?src=hash&amp;ref_src=twsrc%5Etfw">#camgirls</a> if you think we don&#8217;t pay taxes. March is nothing but tax filing posts and pics of boxes full of receipts. Most of us follow the rule of putting 30% of each check away for taxes. <a href="https://twitter.com/hashtag/ThotAudit?src=hash&amp;ref_src=twsrc%5Etfw">#ThotAudit</a>
&#8212; Kandi Cane (@kandi_curves) <a href="https://twitter.com/kandi_curves/status/1066433997511815169?ref_src=twsrc%5Etfw">November 24, 2018</a></blockquote>
</div>
<div class="embed tweet">
<blockquote class="twitter-tweet" data-lang="en">
So apparently incels are reporting sex workers to the IRS to get them audited and they wonder why no woman would ever want to fuck them. <a href="https://twitter.com/hashtag/losers?src=hash&amp;ref_src=twsrc%5Etfw">#losers</a>
&#8212; Mistress Nicci (@mistressnicci) <a href="https://twitter.com/mistressnicci/status/1066780455368708096?ref_src=twsrc%5Etfw">November 25, 2018</a></blockquote>
</div>
Others used a <a href="https://twitter.com/search?q=%23thotaudit&amp;src=typd">#ThotAudit hashtag</a> to either encourage the mass reporting, complain about them, or simply opine on the general feud.

‘Thot Crusade’ Mass Reports Cam Girls, Sex Workers To IRS For Not Paying Taxes

Democrats had barely wrested control of the House Tuesday night when they demanded President Donald Trump turn over his tax returns. Wednesday morning, Democrats declared that investigating Trump&#8217;s personal financial records would be the first item on their agenda come January. 
Democratic Representative Richard Neal (MA) told MSNBC Tuesday night that he plans on using his newfound power as chairman of the House Ways and Means Committee to force the President to turn over his tax returns, and that he&#8217;ll subpoena the records if necessary.
<blockquote class="twitter-tweet" data-lang="en">
MSNBC: House Democrats request Trump&#8217;s Tax Returns
Tonight. No, I&#8217;m not kidding.
&#8212; Mickey White (@BiasedGirl) <a href="https://twitter.com/BiasedGirl/status/1060016152930385921?ref_src=twsrc%5Etfw">November 7, 2018</a></blockquote>
Neal declared his intentions back in October, <a href="https://www.newsweek.com/donald-trump-tax-returns-democrats-will-demand-presidents-records-house-1205085">Newsweek reports</a>, and claimed then that he could use an obscure 1924 provision in the United States tax code, that allows the Ways and Means Committee to view any American&#8217;s tax returns upon request, to obtain Trump&#8217;s records straight from the IRS (though he&#8217;d prefer it if the President simply complied with his wishes).
&#8220;I think we would all be comfortable if this was done on a voluntary basis,&#8221; Neal said. &#8220;If they would resist the overture then I think you could probably see a long and grinding court case.&#8221;
It&#8217;s not clear what Neal hopes to learn from Trump&#8217;s tax returns, but the President hasn&#8217;t exactly been willing to turn over his financial information, either, perhaps leading Democrats to suspect he&#8217;s hiding valuable information on how his finances and his position as President intertwine. During the 2016 campaign, Trump broke with tradition and did not disclose details of his or his corporation&#8217;s finances, claiming that he and his company were under audit by the IRS. 
The IRS does not comment on whether there is an ongoing investigation, but other evidence seemed to suggest that wasn&#8217;t true &#8212; and the IRS noted, publicly, that individuals under audit were under no obligation to keep their returns secret.
If he moves forward with his plan, Neal will have to fight fellow Democrats for the honor of issuing the subpoena, if it comes to that. Rep. Elijah Cummings, who will likely take over the House Oversight Committee, has expressed a desire to see Trump&#8217;s tax returns and investigate whether Trump has run afoul of the Constitution&#8217;s Emoluments clause, which prohibits elected officials from receiving gifts from foreign entities while in a position to direct policy without the express consent of Congress. 
Rep. Maxine Waters, who will now chair the House Financial Services Committee, hasn&#8217;t said outright that she plans on investigating the President, but it&#8217;s not likely she&#8217;ll pass on the opportunity.
In addition to Trump&#8217;s financials, Democrats have, in recent weeks, suggested that they plan on initiating an investigation into whether Supreme Court Justice Brett Kavanaugh sexually assaulted young women while a teenager in suburban Washington, D.C., and re-opening a probe into whether members of the Trump Presidential campaign actively colluded with Russian officials to impact the outcome of the 2016 Presidential election.
Trump won&#8217;t be taking the investigations sitting down, a point he made clear on Twitter Wednesday morning.
<blockquote class="twitter-tweet" data-lang="en">
If the Democrats think they are going to waste Taxpayer Money investigating us at the House level, then we will likewise be forced to consider investigating them for all of the leaks of Classified Information, and much else, at the Senate level. Two can play that game!
&#8212; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1060155917059219461?ref_src=twsrc%5Etfw">November 7, 2018</a></blockquote>
&#8220;If the Democrats think they are going to waste Taxpayer Money investigating us at the House level, then we will likewise be forced to consider investigating them for all of the leaks of Classified Information, and much else, at the Senate level. Two can play that game!&#8221; Trump tweeted.
If Neal does demand Trump&#8217;s IRS records, the President is expected to initiate aggressive litigation in response.

Not Even 24 Hours: Democrats Say They’ll Demand Trump’s Tax Returns As Soon As They Take Over The House

Elijah Cummings

Nancy Pelosi

A former special agent with the Internal Revenue Service (IRS) was sentenced on Tuesday to more than four years in prison for tax fraud.
Alena Aleykina of Sacramento, CA was sentenced to 51 months after filing six false tax returns in three years, stealing money from the government, and obstructing the investigation into her crimes. A <a href="https://www.justice.gov/usao-ndca/pr/former-irs-ci-special-agent-sentenced-over-four-years-prison-filing-false-tax-returns">press release</a> from the U.S. Attorney&#8217;s Office for the Northern District of California said the false tax returns were filed between 2009 and 2011.
&#8220;According to the evidence introduced at trial, Aleykina, who is also a Certified Public Accountant and holds a master&#8217;s degree in business administration, filed six false tax returns: three personal tax returns for years 2009, 2010, and 2011 and three in the names of trusts she created for years 2010 and 2011,&#8221; the release said.
Aleykina, 45, falsely claimed a head of household status on her personal tax returns, on which she also listed false dependents and fraudulently claimed education deductions.
But Aleykina apparently didn&#8217;t stop there. She also petitioned the California Superior Court for Yolo County for a fraudulent legal separation from her husband so the couple could claim rental real estate loss deductions, according to the press release. She also told her employer that she was taking English classes from a trust registered to her sister in order to receive $4,000 from the IRS&#8217;s Tuition Assistance Program.
On a trust tax return, Aleykina claimed she was paying her mother and sister to take care of her son and father.
Oh, and then she lied to investigators about where her government-issued laptop was. She also deleted dozens of files from the laptop once the authorities left.
&#8220;In sentencing Aleykina, Judge [John A.] Mendez stated his concern that defendant was a federal law enforcement officer and emphasized the importance of that fact when considering the defendant&#8217;s betrayal of the public&#8217;s trust,&#8221; the release stated. &#8220;Judge Mendez stated that such fraud and misconduct from a federal agent cannot be tolerated and that the defendant&#8217;s behavior shocked the conscience. In addition to the term of prison imposed, Judge Mendez ordered Aleykina to serve three years of supervised release and to pay $4,000 in restitution to the Internal Revenue Service.&#8221;
Aleykina was found guilty on June 15, 2018, by a federal jury in the Eastern District of California after a two-week trial.
The IRS has had its fair share of scandals in recent years. Earlier this year, a Boston-based IRS agent <a href="https://www.washingtonexaminer.com/news/boston-irs-agent-released-after-pleading-not-guilty-to-forcing-gun-deep-into-mouth-of-drunk-intern-and-raping-her">pled not guilty</a> to handcuffing and raping a 21-year-old female intern while shoving a gun down her throat. Another IRS agent, this one from Philadelphia, PA, was arrested in September 2017 <a href="https://www.phillymag.com/news/2017/10/23/gregory-floyd-irs-agent-arrested-sexual-assault/">for second-degree sexual abuse</a>. Yet another agent, from Boise, ID, was sentenced last December <a href="https://www.kpvi.com/news/local_news/former-irs-agent-sentenced/article_afd245ac-de9b-11e7-8cb9-53751dcbbfe7.html">for distributing methamphetamine</a>.
Aleykina isn&#8217;t even the first IRS agent arrested in recent history for tax fraud. In 2015, a former IRS agent was arrested for orchestrating a tax-refund scheme that may have <a href="https://www.wowt.com/home/headlines/Former-Omaha-IRS-Agent-Arrested-for-Tax-Fraud-Scheme--363335751.html">generated $1 million in false claims</a>. In 2009, a California IRS agent <a href="http://www.nbcnews.com/id/29972289/ns/us_news-weird_news/t/irs-agent-admits-cheating-his-own-taxes/">pled guilty to tax fraud</a>.

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