The House Ways and Means Committee voted in favor of the Taxpayers First Act of 2019 (H.R. 1957), a bipartisan bill that would have significant impact on credit unions. CUNA generally supports the legislation.
The bill includes several measures designed to protect taxpayers from unfair practices and improve Internal Revenue Service (IRS) operations.
This includes provisions that would make changes to the Bank Secrecy Act (BSA), including two related to suspected or actual “structuring transactions” and their treatment under the BSA. The first would only allow the IRS to pursue the seizure of assets if either the property was derived from an illegal source or the transactions were structured for the purpose of concealing a violation of a criminal law or regulation other than rules against structuring.
The second provision provides a taxpayer exemption for interest liability should a court return funds to a taxpayer whose assets were mistakenly seized based on invalidated structuring claims.
Other provisions in H.R. 1957 would:
Additional details on the bill can be found on CUNA’s Removing Barriers Blog.