NAFCU To House: Remove New IRS Reporting Requirements; Focus on Better Solutions For Taxpayer Compliance
In a letter to the U.S. House of Representatives yesterday, NAFCU’s Brad Thaler urged House members to remove a provision from the Senate-passed Fiscal Year (FY) 2022 Budget Resolution proposing that credit unions report to the IRS on annual account inflow and outflow information of American taxpayers. In the letter, Thaler, NAFCU’s Vice President of Legislative Affairs, urges policymakers to instead focus on better solutions for taxpayer compliance such as increased funding and support for the IRS.
The IRS proposal was first announced in the president’s budget and included in the budget resolution approved by the Senate as a way to increase tax compliance and raise revenue to help cover the costs of a proposed $3.5 Trillion dollar reconciliation package. As proposed in the president’s budget, financial institutions would be required to file an annual information return for any and all business and personal accounts based on the inflows and outflows in a given year on any account with over $600 in activity. While the provision in the budget resolution does not carry the weight of law, it does establish a roadmap for future legislative efforts, such as the reconciliation package.
In the letter, Thaler reiterates NAFCU’s opposition to the proposal as it “stands to pose more costs and burdens on community institutions with uncertain returns. We cannot support adding another new reporting requirement, especially without greater analysis and study of its efficacy. Any new requirement stands to require significant development costs and process additions for credit unions as well as reconciliation and compliance burdens on their members.”
Lastly, Thaler raises privacy concerns as a result of these new reporting requirements. “The IRS is already being challenged to handle the problems associated with identity theft and false tax returns filed to claim refunds, not to mention leaks of some taxpayer information. The collection of this additional data is only likely to aggravate the problem of identity theft and taxpayer privacy in the current environment.”
The House is scheduled to return from August recess next week to begin consideration of the budget resolution. NAFCU will continue to engage Congress and the Administration to prevent new burdens on credit unions.
Add to Calendar 2022-08-04 14:00:00 2022-08-04 14:00:00 Supervisory Committee: Laws, Rules, Regulations and Best Practices The Supervisory Committee serves a very unique, but well-defined, role within your credit union. For an institution to function at its best, your management team, Board of Directors and Supervisory Committee must work in harmony. Only when all three groups are active can you ensure excellent member service is provided and your credit union is operated in a safe, sound and compliant manner. In this Supervisory Committee: Laws, Rules, Regulations and Best Practices webinar, you’ll join credit union attorney (and a former Supervisory Committee member) David Reed for an interactive session. He will review the regulatory requirements of the Supervisory Committee with a focus on the interplay between regulations and governance. Special attention will be paid to the effective interaction, communication and balance amongst all three groups of the credit union. Key Takeaways Understand the Regulatory Requirements Appreciate Key Duties and Responsibilities Uncover NCUA Examination Guidance Explore Governance Best Practices Register Now for On-Demand Access$295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until August 4, 2023.Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCRMs Supervisory committee member NCVEs Supervisory committee member non-NCVEs Compliance, risk and internal audit staff Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar NCVEs will receive 1.0 CEUs for participating in the webinar About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
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Add to Calendar 2022-08-03 14:00:00 2022-08-03 14:00:00 6 Criteria to Benchmark Your Credit Union’s 401(k) Plan About the Webinar Your retirement plan is a key tool for attracting, retaining and rewarding top talent—the talent that credit unions need to compete effectively. How does your plan stack up? A benchmarking report can provide insight into actionable items in areas such as fees, investments, plan design and best practices. It can also help ensure you are meeting your fiduciary obligations as a plan sponsor. Join us on August 3rd as we explore the 6 criteria you need to know to benchmark your credit union’s retirement plan. Watch the Webinar On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
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