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NAFCU writes to House in support of legislation prohibiting IRS reporting requirements
Yesterday NAFCU Vice President of Legislative Affairs Brad Thaler wrote to Congressman Drew Ferguson expressing NAFCU’s support for his newly introduced bill the Prohibiting IRS Financial Surveillance Act. The legislation would prohibit the implementation of the IRS reporting requirements for all accounts with $600 or more in outflows or inflows in a given year.
Thaler highlights the benefits of the Prohibiting IRS Financial Surveillance Act, such as protecting consumers’ financial privacy.
“The Prohibiting IRS Financial Surveillance Act would prohibit the IRS from enacting this invasion of privacy into countless American’s daily lives,” wrote Thaler. “At any threshold, requiring credit unions to report on gross inflows and outflows poses regulatory costs and challenges while threatening to reduce participation in financial services and invade the privacy of millions.”
Thaler reiterated NAFCU’s opposition to the IRS reporting requirements since they would create privacy concerns and additional burdens and urged Congress to instead focus its efforts on better solutions for taxpayer compliance, such as increased funding and support for IRS improvements.
“We thank you for introducing this critical legislation to protect both the banking system and consumers from a burdensome reporting regime,” concluded Thaler.
Read the full letter here. The association remains alert on this issue to ensure its exclusion from the Build Back Better Act and will continue to advocate against provisions that would further complicate credit union compliance.
Stay tuned to NAFCU Today for the latest on the legislation as it moves through Congress. In addition, NAFCU has urged members to urge Congress to oppose the requirements in a grassroots campaign.