CUNA and the World Council of Credit Unions jointly wrote to support the Internal Revenue Service’s (IRS) proposed rule reducing regulatory burdens related to the Foreign Account Tax Compliance Act (FATCA). The adoption of FATCA added new and significant compliance costs to U.S. credit unions, particularly those engaged in remittances and have non-U.S. citizens as members, and CUNA has advocated for its repeal in the past.
Under FATCA, U.S. credit unions are classified as “withholding agents” and are required to perform due diligence and withhold a 30% tax on some cross-border payments, as well as maintain compliance with a network of intergovernmental agreements
“We strongly support many aspects of this rule that will reduce unnecessary regulatory burden for credit unions including the elimination of withholding on payments of gross proceeds from the sale or other disposition of any property of a type which can produce interest or dividends from sources within the United States,” reads the letter, signed by CUNA President/CEO Jim Nussle and World Council President/CEO Brian Branch, who urged the IRS to finalize the proposal.
CUNA and the World Council support specific aspects of the proposal, including: