Standing up for members through IRS proposal opposition
Published by: Jared Weiser
October 21, 2021 | Government Affairs
Duplicative and unnecessary regulations only detract Ohio credit unions from their primary goal: serving more than three million members. That’s why the League has been hard at work fighting back against recent proposals requiring credit unions and other financial institutions to report account inflows and outflows exceeding a certain threshold to the IRS. You already made an impact by sending more than 5,000 messages to Congress; the $600 IRS reporting requirement was briefly omitted from the House markup of the bill. Unfortunately, congressional leadership has renewed their support for the proposal. To further combat the misguided initiative, the League recently sent Ohio’s congressional delegation letters requesting their support of H.R. 5451 and S. 2857. These companion bills would prohibit any Federal agency from requiring financial institutions to report on aggregated financial transactions of their members and customers. They also ensure that credit unions will not be saddled with an unreasonable regulatory mandate that risks sensitive member information and violates expected personal privacy.
While the U.S. Senate leadership recently narrowed the proposal’s original scope, now limiting reportable account activity to aggregate inflow and outflow transactions exceeding $10,000 in a calendar year and exempting payroll and social security deposits, the League continues urging opposition to any expanded reporting obligations. That’s why we recently wrote U.S. Senator Sherrod Brown (D-OH) and U.S. Rep. Joyce Beatty (D-New Albany) and requested their support in opposing any increased IRS reporting that would create substantial compliance hurdles for credit unions and their members.
We need your help to continue battling against the IRS proposal with federal leaders. Take a moment to send a message to your member of Congress, asking them to better protect the personal information people, families, businesses, and communities entrust to their credit union by opposing this requirement.
If you want to learn more or have questions about the IRS Tax Gap Proposal, please contact Legislative Affairs Director Jared Weiser.
