IRS Reporting Requirements: Talking Points and Background
- View the issue guide on Reporting Requirements (League password required. Don't have one? Register here.)
- The Credit Union National Association and your League issued an action alert this week calling on credit union leaders to oppose new Internal Revenue Service reporting provisions that would require financial institutions to report additional detailed account holder information.
In an effort aimed at increasing taxpayer compliance, the Biden Administration has proposed that financial institutions be required to report additional account holder information in an enhanced annual IRS Form 1099-INT.
Your League and our other industry partners are strongly opposed to any expansion of reporting requirements related to 1099-INTs.
CUNA has produced an issue guide on this proposal, with background information, talking points and its legislative outlook. This will prove helpful to credit unions preparing to engage with lawmakers on this issue.
Beginning in 2023, the Administration hopes that the IRS will be able to use this information to increase tax compliance and thus raise federal revenues by $463 billion over 10 years. The Administration’s Fiscal Year 2022 budget proposes the creation of a new and comprehensive financial account information reporting regime.
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.
We are deeply concerned about the added regulatory burden and costs this proposal would place on credit unions.
The Credit Union National Association and your League also issued an action alert this week calling on credit union leaders to oppose the new Internal Revenue Service reporting provisions.
This language is part of negotiations on the $3.5 trillion infrastructure package Congress is currently debating and would dramatically increase the regulatory burden on financial institutions.
« Return to "Latest News" Go to main navigation