Proposed IRS reporting provisions would create ‘significant new burdens’
September 8, 2021
Credit unions need to work together against a proposal that would require financial institutions to report money moving into and out of accounts to the Internal Revenue Service (IRS), said CUNA Chief Advocacy Officer Ryan Donovan. CUNA issued an action alert Wednesday urging credit unions to share their concerns about the proposal, which under consideration in the infrastructure package currently being debated.
“This proposal would put credit unions and banks in the position of perpetrating an unprecedented invasion of privacy, in addition to creating a significant new compliance burden for credit unions,” Donovan said. “We encourage credit unions to reach out to your staff, members, and other stakeholders, as this directly impacts their day-to-day activities and privacy. We need to tell members of Congress to oppose this provision.”
The proposal would require depository institutions reporting nontaxable activity, including the gross amount flowing into and out of accounts to try and identify unreported taxable income.
Credit Union Magazine’s Summer 2023 issue highlights the lending outlook for the rest of the year, how credit unions leverage fintech companies to boost digital lending, the power of lending partnerships, common Bank Secrecy Act violations, and the shift board members must make when becoming chair.
