IRS Reporting Requirements: Measure Dropped From Budget Reconciliation Package, But CUs Should Continue Messages to Congress

Credit unions are pleased to see that proposed IRS reporting requirements for financial institutions were dropped from the  budget reconciliation package currently being marked up by the House Ways and Means Committee. 

In announcing the measure's removal from the budget reconciliation package, Rep. Kevin Brady (R-Texas) told the crowd at NAFCU's 2021 Congressional Caucus that the measure represents an important privacy issue.

"I also worry this would push more people away from our credit unions, and harm rural and minority communities the most," he noted in published reports.

Brady cautioned that the proposal could still be inserted into the bill as the budget reconciliation process moves forward.

The proposal from the Treasury Department would require credit unions to report gross inflows and outflows of all business and personal accounts of $600 or more to the IRS.

We continue to call on credit union advocates to use the Grassroots Action Center to send a message outlining concerns with the proposal, which has been discussed as part of the Build Better Act. Credit unions can also activate their members to send messages to Capitol Hill through CUNA’s Member Activation Program (MAP) community.

Your League has been tracking this issue closely for months and wrote members of the Virginia Congressional delegation in opposition to the measure. Virginia Congressmen Ben Cline (R-6th) and Rob Wittman (R-1st) this week signed onto a letter by Rep. Tom Emmer (R-Minn.) to Congressional, Treasury, and Internal Revenue Service (IRS) leaders Monday expressing concerns over a proposal. 

Resource: IRS Reporting Requirements: Talking Points and Background
Related: League Writes Lawmakers in Opposition to Expanded 1099s
Related: Advocacy Alert - Write Your Lawmakers and Help Fight New IRS Reporting Provisions
Related: Take Action - Tell Congress to Oppose New IRS Reporting Provisions