Financial Institutions Urge Public Action Against New IRS Proposal

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Public Encouraged to Contact Legislators Now

MARSHFIELD, WI (OnFocus) – According to CUNA (Credit Union National Association), Speaker of the House Nancy Pelosi (D-Calif.) said Tuesday that language expanding financial institution reporting requirements to the Internal Revenue Service (IRS) would be included when the House takes up its final reconciliation bill.

The proposal 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. (Contact your legislator here.)

“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.”

CUNA, Leagues, and credit unions strongly oppose the language, which was not present in the House Ways and Means Committee-passed bill.

“Credit union advocacy has kept this policy out of early legislative drafts, but we need your continued help to keep this policy out of Congress’ reconciliation bill,” said Murphy. “Now is the time to contact your legislator and let them know you don’t want your private account data and consumer information freely available to the government.”

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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