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Rep. Brady offers key updates on burdensome tax reporting requirement exclusively to CUs at NAFCU’s Caucus
House Ways and Means Committee Ranking Member Kevin Brady, R-Texas, Tuesday told NAFCU Congressional Caucus attendees that he is pleased that the Committee has not included new NAFCU-opposed reporting requirements for all financial institutions in the draft of the reconciliation package being marked up this week in the Committee. He cautioned, however, that the proposal could still be inserted as the reconciliation bill moves through the legislative process.
Under the proposal – first included in the Administration’s proposed budget for FY 2022 – financial institutions would be required to report annually the account inflow and outflow of all banking accounts with $600 or more to the IRS. NAFCU has been working with Ranking Member Brady and others to lead the fight against this proposal.
"This is an issue of a right to privacy," said Brady on the proposed requirement. "I also worry this would push more people away from our credit unions, and harm rural and minority communities the most.
"We have to keep working hard to make sure it does not appear later. [...] There is a better way to close the tax gap," he added.
NAFCU has consistently urged Congress to remove the provision since its inclusion in the Administration’s budget proposal.
While NAFCU supports seeking more comprehensive solutions to tax compliance, the association is concerned that adding speculative reporting requirements would create complexity and confusion for both financial institutions and taxpayers.
The association will remain steadfast on this issue to ensure it is not included in later iterations of the bill or added as an amendment and will continue to advocate against provisions that would further complicate credit union compliance and reporting burdens.
In addition, Brady expressed relief that NAFCU has continued to educate Congress on the benefits of the credit union tax exemption and helped to kept it in place. Brady noted the removal of the exemption for credit unions would have lasting effects throughout the economy and country.
"I love my job and who I work for, including our credit unions," said Brady to attendees. "Let's keep working together, you are great partners."
NAFCU’s Congressional Caucus, though ending today, is currently being held in a hybrid format, both in-person and virtually; view the agenda here. Follow along on Twitter with #NAFCUCaucus for live event updates.