Credit Unions Take Action Against New IRS Proposal

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Proposed IRS Reporting Provision Creates Controversy

MARSHFIELD, WI (OnFocus) – As Congress considers new infrastructure spending, lawmakers are considering unconventional sources of revenue to fund their plans. One proposal under consideration would require financial institutions like credit unions and banks to report to the Internal Revenue Service (IRS) many activities on accounts with balances over $600.

“Such an unprecedented grab of someone’s personal financial data raises several concerns,” said MMCCU President David Murphy. “This impacts credit unions and banks, both locally and nationally.”

He explained that the proposal would violate consumers’ personal privacy by forcing credit unions and other financial institutions to provide the government with information that does not reflect taxable activity.

“Additionally, financial institutions—particularly those in rural and low-income communities—would face a new and expensive regulatory burden that could make it untenable to serve those consumers already left behind by Wall Street banks,” he said.

Lastly, the government relies on decades-old data systems to store and secure IRS information.

“These systems have already been compromised in recent years, and the addition of this type of data only increases the likelihood of a future breach of your personal financial information,” said Murphy.

“At MMCCU, we value civic engagement and believe it’s our duty to inform you when legislation is being discussed that could directly affect our members. We encourage everyone to consider lending their voice to this important effort.” Click on this link to learn more and send an e-mail to your U.S. Representative.

A bill has been proposed that would would prohibit implementation of any expanded Internal Revenue Service (IRS) financial institution reporting requirements. Rep. Ashley Hinson (R-Iowa) introduced the bill, which follows a Senate companion bill introduced last week.

If you have questions, please contact MMCCU!

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News Desk
Author: News Desk

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