Privacy and data security concerns are among the top issues with proposed increased reporting requirements, CUNA wrote to Sens. Tommy Tuberville (R-Ala.) and John Thune (R-S.D.) Tuesday in support of their bill that would prevent a proposal requiring financial institutions to report large amounts of account information to the Internal Revenue Service (IRS) from being implemented.
“We are also concerned about the effect this proposed new requirement will have on credit unions. Privacy and data security are paramount issues for credit unions and their members,” the letter reads. “Whether it is the massive data breach at the federal Office of Personnel Management in 2014 or this year’s IRS leak of federal tax returns of many wealthy Americans, we remain doubtful that such data will remain safe and private from hackers and other malevolent individuals."
CUNA adds that smaller credit unions would be especially burdened by this new proposal.
“From the increased costs of software upgrades to staff training, smaller institutions would perhaps need financial resources and additional time for implementation to meet the new requirements of the proposal,” the letter reads.
CUNA issued an action alert calling on credit unions to send their concerns to Capitol Hill using its Grassroots Action Center. As of this week, more than 275,000 messages have been sent.
Credit unions can also activate their members to send messages to Capitol Hill through CUNA’s Member Activation Program (MAP) community.