Correct. People should spend a little time thinking about what reporting all transactions to the IRS really means. Do you want to buy a firearm? The IRS will know. Do you want to donate to a political party? The IRS will know and know which party you donated to. Do you want to go to the doctor? The IRS will know. Do you want to go see a psychologist or psychiatrist? The IRS will know. Do you want to visit a drug treatment center? The IRS will know.
Whatâ(TM)s more, what if you pay for a drug treatment center for a friend or spouse? It will look like it was for you. What if your employer is the US Military or government contractor? You know theyâ(TM)ll data mine it all. And how hard will it be for the IRS to crank out a list of all the people who donated to a specific party or cause?
In the United States we have an expectation of privacy (Roe vs Wade) and more importantly we have the 4th Amendment which states:
The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
This is akin to having a standing warrant on every citizen of the United States. It wasnâ(TM)t long ago where the Supreme Court said that the police can not force people to unlock their phones because everyoneâ(TM)s private data is on their phone. Your bank account deserves no less.