Ryan Donovan

IRS reporting proposal ‘undermines confidence’ in financial system

October 25, 2021

The proposal to expand financial institution reporting to the Internal Revenue Service continues to raise major concerns despite revisions, CUNA Chief Advocacy Officer Ryan Donovan said on CUBroadcast. CUNA, Leagues, and credit unions continue to push back against the proposal, and credit union stakeholders have sent more than 600,000 messages in opposition to Capitol Hill.

Donovan said the proposal brings numerous privacy, data security, and compliance concerns, and would impact nearly every American that earns a wage.

“This would cover everyone, and it represents an incredible invasion of privacy,” Donovan said, adding that “the essence of our concern is that it undermines the confidence in the banking system and credit unions.”

Bills have been introduced in the House and Senate to prohibit implementation of the expanded reporting requirements, and more than 200 House members wrote Treasury Secretary Janet Yellen in opposition.

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.

Donovan’s complete interview with CUBroadcast can be found below.