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Rep. Brady to NAFCU: Ways and Means Committee bill excludes burdensome tax reporting requirement
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 process.
Under the proposal – first included in the Administration’s proposed budget for FY 2022 – all financial institutions would be required to report all annual account inflow and outflow of $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.