Home Info Newsroom In a Positive Development for CUs, White House Framework Omits IRS Reporting Proposal

In a Positive Development for CUs, White House Framework Omits IRS Reporting Proposal

Authored By: Lewis Wood on 10/28/2021

The White House's reconciliation framework does not contain the credit union-opposed provision requiring increased reporting to the Internal Revenue Service (IRS), according to reports Thursday and a White House release outlining the framework.

"This is a positive development for credit unions and an important step forward in our now months-long battle against this proposal," said League President/CEO Carrie Hunt. "We know this remains a fluid situation and proposals like this can resurface prior to passage, so we remain engaged."

Credit unions strongly pushed back against the proposed provision since it was first discussed in the summer. Six members of Virginia's Congressional delegation signed on to letters initiated by colleagues noting their opposition to the proposal.

The proposal would have required financial institutions to submit reports of most account inflows and outflows, which credit unions believe to be an unprecedented overreach of the federal government. Beyond the consumer privacy issues, we also voiced cybersecurity concerns given that the government -- which has been victimized by several high-profile data breaches -- would host this data. 

It would also threaten the ability of financially vulnerable households to access mainstream financial services and it represents a costly compliance and technology burden for financial institutions, particularly smaller institutions.

CUNA/Leagues issued an action alert in September calling on credit unions to comment on the proposal, resulting in more than 785,000 messages of opposition, including more than 5,000 for Virginia.

Six credit union champions introduced credit union-supported House and Senate bills to prohibit implementation of the requirements, and hundreds of members from both parties wrote calling for it to be withdrawn.


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