Does the IRS monitor your savings and checking accounts?

The IRS does not have access to monitor bank accounts. However, The IRS receives certain “Information Statements” under various banking and other financial institution regulations, triggered by certain transactions. 

Here are some things that trigger your financial information being sent to the IRS:

  • 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.