Credit unions and banks oppose IRS tax gap proposal

Published by: Emily Leite

June 30, 2021 | Political Action

Having reasonable and consistent federal regulation empowers credit unions to spend more time doing what they do best, serving more than three million members. With a swinging ideological pendulum and sweeping legislative and regulatory shifts capturing banks and credit unions together in a turbulent wake, the League teamed up with the Ohio Bankers League (OBL) to urge U.S. Senator Rob Portman’s (R-OH) opposition to an arduous Internal Revenue Service (IRS) tax gap reporting proposal. Currently, Congress is debating whether to require community-based financial institutions, like credit unions and banks, to periodically capture and report member account inflows and outflows to better assist the IRS in accounting for any unreported individual or business tax obligations. The proposal misguidedly deputizes financial institutions as tax regulators and would greatly increase the compliance and regulatory burden of all community financial institutions. Senator Portman has reliably supported common-sense regulatory reform efforts in the past, and as the leading Senate republican negotiator on the IRS proposal, received the joint proactive federal advocacy engagement from the League and OBL as discussions continue. The League will continue to engage with Senator Portman on the challenges connected to the proposal while keeping you tuned in to the worrisome elements it could pose should it be successful.

Read the joint letter to the Ohio congressional delegation and connect with Chief Advocacy Officer Emily Leite for any questions or concerns regarding the IRS Tax Gap Proposal.

Contact Emily Leite for questions or assistance.

Emily Leite
Emily Leite Chief Advocacy Officer E: eleite@ohiocul.org
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