Newsroom

June 10, 2015

House Rules eyes NAFCU-sought 1099 fix

The House Rules Committee today is considering a manager's amendment to trade legislation slated for action Friday that would leave current interest reporting on IRS Form 1099 unchanged but increase penalties for noncompliance.

Currently, the trade bill (H.R. 1295) includes a provision that would revise current law to require credit unions, banks and broker/dealers to report to the IRS and members and customers information related to all interest-bearing and non-interest bearing accounts.

Now, information reports are not required on non-interest-bearing accounts, and there is currently a $10 threshold for reporting on interest-bearing accounts. Reports are filed on Form 1099-INT.

NAFCU and several other financial industry trades wrote House and Senate leaders last week warning the change would impose substantial costs on the financial services industry that far exceed the revenue that would be gained by it. NAFCU lobbyists have been working with the backers of the bill to remove this provision.

The House Rules Committee today is reviewing next steps for the trade bill, including the above-noted manager's amendment from House Ways and Means Committee Chairman Paul Ryan, R-Wis. The trade package is slated for House voting Friday.