The Biden Administration is pursuing a proposal in legislation before Congress that would require credit unions to report total inflows and outflows for business and person accounts totaling more than $10,000 annually to the IRS.
Strong opposition from financial institutions and consumers alike has led the Administration to try to “scale back” the provision. Changing the dollar threshold or excluding certain transactions does not solve the problem. Whether you have weighed in on this issue already or not, it is important that policymakers hear from you that forcing credit unions to report their members’ account data to the IRS is a problem.
While the House passed version of the reconciliation package excluded this provision, recent reports say that the Treasury Department is working with a group of Senators to modify the IRS reporting provision and put it back into the reconciliation bill. WE MUST CONTINUE TO KEEP THE PRESSURE ON THAT THIS PROVISION, IN ANY FORM, IS UNACCEPTABLE.
The bottom line is that reporting account inflows and outflows is a radical new concept that is a bad idea and must be rejected outright. NAFCU is strongly opposed to this legislation because of the compliance burdens this proposal would impose on credit unions as well as the privacy risks it would create for you and your members.
We have written a sample message in the NAFCU Grassroots Action Center that you can send to your Senators expressing your opposition to this proposed requirement and how it could impede your efforts to serve credit union members.