Increased IRS Reporting Proposal Removed from Reconciliation

A provision requiring increased financial institution reporting to the Internal Revenue Service was not included in reconciliation legislation unveiled by Congressional leaders on October 28, 2021. CUNA, Leagues, and credit unions helped generate more than 785,000 messages to Capitol Hill sharing concerns with the proposal.

“Credit unions and their members made their voices heard loud and clear over these past few months, and the result is a victory for all consumers,” said CUNA President/CEO Jim Nussle. “CUNA, Leagues, and credit unions engaged Congress continuously during this process and showed them that this proposal would have hurt consumers, harmed financial inclusion efforts, and created serious data privacy concerns. This is a clear-cut example of our fierce, bold 360-degree advocacy in action.”

The proposal would have required financial institutions to submit reports of most account transactions, which CUNA said was an unprecedented overreach of the federal government and gave rise to numerous cybersecurity concerns with the government hosting the data.

CUNA issued an action alert in September calling on credit unions to comment on the proposal. It also joined with the American Association of Credit Union Leagues and all 35 Leagues in communicating concerns.

Hundreds of members of Congress wrote to Treasury leaders with their opposition to the increased reporting as a result of this CUNA-League engagement, and six credit union champions introduced bills to prevent the proposal’s implementation.

The provision is also absent from the White House framework of the legislation released Thursday.

 

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