IRS Reporting Requirement
Credit unions’ main priority is to meet the financial needs of consumers while maintaining their duty as a trustworthy financial institution. A new proposal is being floated in Congress that would impose burdensome reporting requirements for credit unions and cause data privacy concerns for their members. The provision would require financial institutions to report account inflow and outflow information of $10,000 or more to the IRS.
NAFCU strongly opposes any effort to require financial institutions to report account flows to the IRS. Such proposals pose major privacy concerns, and their potential effectiveness is unclear. Credit unions already face a wide range of reporting responsibilities alongside regulatory compliance burdens. They do not need to adhere to another difficult and speculative reporting requirement.
How This Impacts You
NAFCU urges lawmakers to reject any legislative effort to place new IRS reporting requirements on credit unions, at any threshold and regardless of any exemptions. While NAFCU supports efforts to close the tax gap and increase tax compliance, creating additional burdens and costs on credit unions, and placing the financial privacy of more than 135 million credit union members at risk is not the way to go.
Urge Congress to Reject Proposed IRS Reporting Requirement.
Contact your member of Congress to express your concern against this radical reporting regime. Tell Congress to oppose this invasive provision through NAFCU's Grassroots Action Center