Home Advocate Legislative Affairs Governmental Affairs News Take Action: Tell Congress to Oppose New IRS Reporting Provisions

Take Action: Tell Congress to Oppose New IRS Reporting Provisions

Authored By: Lewis Wood on 9/1/2021

Action Alert - Write Lawmakers

The Credit Union National Association and your League issued an action alert this week calling on credit union leaders to oppose new Internal Revenue Service reporting provisions that would require financial institutions to report additional detailed account holder information.

This language is part of negotiations on the $3.5 trillion infrastructure package Congress is currently debating and would dramatically increase the regulatory burden on financial institutions.

CUNA has produced an issue guide on this proposal, with background information, talking points and its legislative outlook. This will prove helpful to credit unions preparing to engage with lawmakers on this issue.

Beginning in 2023, the Administration hopes that the IRS will be able to use this information to increase tax compliance and thus raise federal revenues by $463 billion over 10 years. The Administration’s Fiscal Year 2022 budget proposes the creation of a new and comprehensive financial account information reporting regime.

Credit unions, banks and other entities would be required to annually report to the IRS the gross inflows and outflows of account holders (businesses and individuals) with a breakdown for cash, transactions with a foreign account, and transfers to and from another account with the same owner.

We are deeply concerned about the added regulatory burden and costs this proposal would place on credit unions.

  • Share:

« Return to "Advocate Blog" Go to main navigation