September 09, 2021

NAFCU continues to urge against inclusion of IRS reporting requirement in Budget Resolution


As the House Ways and Means Committee proceeds with its portion of the budget reconciliation process, NAFCU Vice President of Legislative Affairs Brad Thaler urged the committee against the inclusion of language to enact a burdensome reporting requirement for all financial institutions to report all annual account inflow and outflow of $600 or more to the IRS – currently included in the fiscal year 2022 Budget Resolution.

NAFCU has consistently urged Congress to reject the provision since its inclusion in the Administration’s FY 2022 budget proposal as a potential revenue raiser.

"We strongly urge you to not include any language enacting this provision during your markup," wrote Thaler. "We believe that requiring credit unions and other financial institutions to report on gross inflows and outflows for all accounts above $600 annually stands to pose more costs and burdens on community institutions with uncertain returns."

Read the full letter. Thaler previously wrote to the House and characterized the provision as “a misguided proposal that stands to pose more harm and burdens on community institutions with uncertain returns.”

While NAFCU supports seeking more comprehensive solutions to tax compliance, the association is concerned that adding speculative reporting requirements would create complexity and confusion for both financial institutions and taxpayers.

NAFCU will closely monitor the House’s work on the Budget Reconciliation and advocate against provisions that would further complicate credit union compliance and reporting burdens.