April 03, 2019

IRS reform bill advances to House

Capitol DomeThe House Ways and Means Committee on Tuesday unanimously advanced legislation that would make some structural changes to the Internal Revenue Service (IRS) and change the agency's interactions with taxpayers. Some of the provisions could impact certain credit union processes.

Of note in H.R. 1957, the bill would:

  • make changes to the IRS' seizure or forfeiture of assets related to the Bank Secrecy Act (BSA) and cash structuring;
  • require the IRS to conduct a study and report to Congress ways to increase the number of tax refunds paid by electronic fund transfers (EFTs);
  • create a website for taxpayers to file Form 1099;
  • allow direct payment of federal taxes by debit and credit cards, though consumers would still be responsible for associated fees;
  • require covered organizations to electronically file Form 990; and
  • require the IRS to send a notice to an organization if it did not file Form 990 for two consecutive years (tax-exempt status is revoked if an organization fails to file the form for three consecutive years).

A similar bill was passed by the House during the last Congress, but was never taken up by the Senate.

H.R. 1957 now moves to the full House for consideration. NAFCU will keep credit unions updated as it moves through the chambers.