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Take Action: Tell Congress to Oppose New IRS Reporting Provisions

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EDITOR NOTE: The Credit Union National Association (CUNA) is asking its members, and all Americans, to tell Congress to oppose new IRS reporting provisions. One of the ways Congress is looking to pay for its new multi-trillion-dollar spending programs is to beef up IRS “enforcement.” One way the politicians are looking to do this is by forcing credit unions and other financial institutions to report all money coming in and out of any account with more than $600 in it. There are several massive problems with this proposal, according to CUNA. It would be a massive violation of consumers’ personal privacy, it would cause financial institutions (especially in rural and low-income areas) unnecessary and expensive regulatory hurdles, and it would rely on decades-old government data systems which have already been compromised recently and are unlikely to be able to hold this incredibly sensitive data securely. 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 and leaves the data vulnerable to a cyber-attack.

Tell Congress to Oppose New IRS Reporting Provisions

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 untenable to serve those consumers already left behind by Wall Street 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.

The Bottom Line:

Don’t jeopardize consumers’ personal financial privacy by allowing the IRS to access nontaxable deposit account information from credit unions and banks. 

Take Action now by visiting the Original post from CUNA

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

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