The expanded Internal Revenue Service (IRS) reporting proposal should be withdrawn and the administration should look at more targeted methods of tax enforcement, CUNA and other organizations wrote President Joe Biden Monday.
“Our members, and the American people, believe that they have a reasonable right to privacy and this overly broad proposal to report gross annual inflows and outflows from nearly every account is disconnected from its purported narrow purpose of focusing government scrutiny on Americans with actual income above $400,000,” the letter reads.
The proposal remains harmful to both financial institutions and consumers, despite changing the account threshold as part of recent negotiations.
“These changes fail to address the reality that any program based on gross annual inflows and outflows will impact Americans from all income levels,” the letter reads. “Even with the proposed exclusions of certain types of income, a large number of common and totally innocent transactions by individuals and small businesses will be captured by this new regime.”
The organizations also note the compliance burdens and privacy concerns that come with the proposal.
More than 700,000 comments have been sent in response to CUNA’s action alert on the subject, and comments can still be sent using CUA’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.