League urges opposition to federal tax gap proposal
Published by: Emily Leite
July 28, 2021 | Political Action
Having reasonable and consistent federal regulation empowers credit unions to spend more time doing what they do best, which is serving more than 3.1 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 opposition from the Ohio congressional delegation on an arduous Internal Revenue Service (IRS) tax gap reporting proposal. Congress continues debating whether community-based financial institutions, like credit unions and banks, should be required 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 born by all community-based financial institutions. As the federal infrastructure deal navigates through Congress, the League will continue to advocate how this proposal poses operational challenges for credit unions and impacts their members.
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.
