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This week, NAFCU has continued its outreach to congressional members urging them to oppose the new IRS reporting requirements for financial institutions in the Build Back Better Act (BBBA). In its outreach, NAFCU is focused on consumer opposition to the new requirements as well as noting that potential compromises being floated do not address credit union concerns.

Many consumers oppose having their financial information shared with the Internal Revenue Service. NAFCU is informing congressional offices that credit union consumers have already sent tens of thousands of letters to Congressional offices in opposition to the additional IRS reporting requirements.

The proposed new reporting requirement would require financial institutions to submit information to the IRS for all accounts with over $600 in inflow or outflow transactions on an annual basis. NAFCU has continuously opposed this provision since it was unveiled in the President’s FY 2022 budget proposal.

Last week, NAFCU’s Vice President of Legislative Affairs Brad Thaler sent a letter to Congress highlighting concerns on compromise language to raise the threshold that some Democrats have floated.

“Because this provision focuses on the new reporting concept of account flows, and not income, most Americans would be caught up in this new scheme even at a higher threshold,” mentioned Thaler. “Furthermore, additional parameters will create additional compliance hurdles for financial institutions to report the correct account information. This provision cannot be fixed and should be rejected.”

The association remains alert on this issue to ensure its exclusion from the BBBA and will continue to advocate against provisions that would further complicate credit union compliance. Stay tuned to NAFCU Today for the latest on the legislation as it moves through Congress. In addition, NAFCU has urged members to urge Congress to oppose the requirements in a grassroots campaign.