What are the implications of the US proposal to report transactions over $600 to the IRS?

Ludicrous.

It just happens to be happening under the Biden Administration, the way it works is how the IRS and Department of Treasury work. They set out long-term goals and objectives they would like to achieve. Just happens to be Biden’s bad luck to be the sponsor of it now.

However, I do agree with the comments, why not just have everything be reported to the IRS then. Heck, let IRS have visibility in all the transactions a financial institution may do on behalf of its customers.

The truth is, this is really a ludicrous proposal. One that violates (IMHO) the State Banking Charter, where the federal government has no right, and State Banking Regulators can possibly block this, but the ramifications of such a reporting requirement and then the constant barrage of notices being sent to honest taxpayers, asking to explain this, or that is definitely something that will be abused. It will be grounds for harassment for weeks/months by the IRS asking you to explain your finances in excruciating detail and then letting you go and saying “Okay for now”.

Mark my words, this is a teaser of worse things to come. The Department of Treasury wants total control over its citizens and banks/FIs around the world to know how money is being spent, etc. They are literally testing the public opinion with this $600 reporting requirement.

Down the line, a few years from now, the $600 reporting requirement would pale in comparison.