IRS Computer Viruses to work overtime

The latest attempt by Congress to fake a recovery includes capital controls on foreign accounts, pointed out by Zero Hedge. The capital control requires foreign banks to withhold 30% of gains until tax compliance is assured by the IRS. I went to the actual language in the new jobs bill and can verify, in Zero Hedge terms:

Provision requires that foreign banks not only withhold 30% of all outgoing capital flows (likely remitting the collection promptly back to the US Treasury) but also disclose the full details of non-exempt account-holders to the US and the IRS.

How does this work in practice when money is transferred with a key strokes? Banks and human managers generally send account information to the IRS.

This is the Chinese model, make it a law to report money changing. The Chinese government invests a lot in computer virus generation, the IRS will likely do the same to back up collection. Arnold Kling warned us about this.

I consider it the last grasp at salvation for an unsustainable funny money policy.