Revisions to a proposal to require increased financial institution reporting to the Internal Revenue Service do not address credit union concerns, CUNA Chief Advocacy Officer Ryan Donovan said Tuesday. Reports emerged this week of potentially raising the $600 account threshold in original proposals to $10,000.
“Every time this proposal changes, it gets worse. For the country’s minimum wage workforce, there is no fundamental difference between a $600 reporting threshold and a $10,000 reporting threshold,” Donovan said. “Now proponents expect credit unions and banks to play arbiter, declaring what does and doesn’t meet proposed exceptions like wages and down payments. They’ve just taken something very invasive and made it incredibly more so while turning an average compliance bad dream into a waking nightmare.
“The revised proposal is a huge leap in the wrong direction,” he added.
CUNA, Leagues, and credit unions have expressed serious concerns over the compliance burden and increased privacy risks that would come with the increased reporting.
Credit unions have sent nearly 600,000 messages detailing these concerns to Capitol Hill using CUNA’s Grassroots Action Center.
Credit unions can also activate their members to send messages to Capitol Hill through CUNA’s Member Activation Program (MAP) community.