Major media outlets around the country have picked up on the strong CUNA, League, and credit union push against a proposal to require expanded financial institution reporting to the Internal Revenue Service (IRS). CUNA Chief Advocacy Officer Ryan Donovan said—despite reports of an increased threshold—that the proposal presents major compliance burdens and security concerns.
Reports this week have indicated a willingness to adjust the account threshold from $600, up to $10,000.
“Raising the threshold to $10,000 sounds like it’s a big increase, but it’s not. It’s fundamentally flawed at any threshold," Donovan told Reuters in response to the reported $10,000 number.
Fox Business also quoted Donovan on the change, noting that the threshold doesn’t make a difference when one looks at the total amounts coming into and out of an account over a year.
“Every time this proposal changes, it gets worse,” Donovan said. “For the country’s minimum-wage workforce, there is no fundamental difference between a $600 reporting threshold and a $10,000 reporting threshold.”
Donovan reiterated to The Hill that the proposal is flawed at any threshold and added credit unions are continuing their push back against the proposal. As of this week, credit union stakeholders have sent nearly 600,000 messages to Capitol Hill.
He also called the plan a “waking nightmare” in an interview with Fast Company.