Increased IRS Reporting ‘Risky and Unnecessary’ for Consumers

Note: Your League thanks everyone who has weighed in with their member of Congress on this issue! If you still haven’t, you can easily do so here.

CUNA urged Joint Economic Committee leadership to take a “close look at the dangers” of proposed increased Internal Revenue Service (IRS) reporting requirements. The committee met Wednesday to discuss various funding measure for pending reconciliation legislation.

Under this proposal, banks, credit unions, and other entities would be required to annually report to the IRS the gross inflows and outflows of account holders (businesses and individuals) with a breakdown for cash, transactions with a foreign account, and transfers to and from another account with the same owner.

“This new proposal would result in banks and credit unions turning over to the IRS sensitive account details that in and of themselves do not constitute taxable events. This would leave the IRS with a massive trove of personal financial data that would be used in a manner that is not detailed in the proposal. This is risky and unnecessary,” the letter reads.

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Related: As Debate, Deals Continue on Capitol Hill Over Build Back Better Act, NAFCU Again Pushes Back on IRS Proposal