Proposed IRS Reporting Provision
Circle FCU wants to make sure that our members are always informed of any kind of legislation that could impact you and your accounts. We are concerned about a current Internal Revenue Service (IRS) reporting proposal that is being discussed. This proposal is not currently in effect, but it does raise some concerns regarding customer privacy, data security, increased compliance costs, and potential damage to member relationships for credit unions, as well as all financial institutions across the United States.
What is the New Proposal?
As Congress considers critical new infrastructure spending, policymakers are eying unconventional sources of revenue to fund their plans.
One proposal under consideration would require credit unions and other financial institutions to report to the Internal Revenue Service (IRS) how much money has gone into and out of accounts holding more than $600.
This unprecedented access to consumers' personal financial data raises several alarms:
- This proposal would violate consumers' personal privacy by forcing credit unions and banks to provide the government with information that does not reflect taxable activity.
- Financial institutions, particularly those in rural and low-income communities, would face unnecessary and expensive regulatory hurdles that could make it unsustainable to serve those consumers already left behind by big banks.
- The government relies on decades old data systems to store and secure IRS information. These systems have already been compromised in recent years, and the addition of this type of data only increases the likelihood of a future breach.
How You Can Help.
Circle FCU will be opposing this proposal and we ask you to join us in telling your state and federal lawmakers to oppose this new IRS reporting proposal as well. Please take a moment to follow the link below to the Credit Union National Association (CUNA) webpage where they have drafted an email you easily and quickly can send to our local legislation.