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NAFCU is focused on its advocacy efforts against the IRS reporting requirements that would require financial institutions to report account inflow and outflow information, currently included in the budget reconciliation package, the Build Back Better Act. Senate Democrats Tuesday released a pared down version of the proposal, raising the threshold from $600 to $10,000.

“It has become abundantly clear that Americans oppose the IRS obtaining additional information on their financial accounts," said NAFCU President and CEO Dan Berger in response to the changes. "The updated plan is nothing more than window dressing in an attempt to shore up support for a flawed proposal. Instead of creating financial privacy risks for consumers and adding compliance costs for our nation’s community financial institutions, Treasury and the IRS should focus its attention on the data it already has to increase tax compliance.”

NAFCU has been steadfast in its efforts to urge Congress to reject the provision since its first inclusion in the Biden administration's fiscal year 2022 budget proposal.

Monday, NAFCU Vice President of Legislative Affairs Brad Thaler wrote to Congressman Drew Ferguson, R-Ga., expressing NAFCU’s support for his newly introduced bill the Prohibiting IRS Financial Surveillance Act. In addition, NAFCU has urged members to urge Congress to oppose the requirements in a grassroots campaign.

Of note, the Treasury Department Tuesday published a new fact sheet in an effort to justify this speculative IRS reporting requirement. The fact sheet addresses several questions but reiterates the broad scope of the program, arguing that it’s meant to help the IRS target “high-income people under-report their income (and under-pay their tax obligations).”

The association continues to advocate for credit unions and their members to ensure this provision is not included in the final legislation and will continue to advocate against provisions that would further complicate credit union compliance and reporting burdens. 

Stay tuned to NAFCU Today for the latest on the legislation as it moves through Congress.