Take Action: Tell Congress to oppose new IRS reporting provisions
As you may have heard, a new tax reporting proposal is being considered as part of the $3.5 trillion “Build Back Better Act” reconciliation package. The Treasury Department’s proposal, if passed, would require credit unions and banks to report the inflows and outflows of funds to accounts that hold more than $600. The additional accountholder information would be reported through an enhanced Form 1099-INT. The end goal of this burdensome requirement is to discover additional taxable income sources for the government, which have been estimated to be approximately $463 billion over a 10-year period.
SUFCU does not support this proposal as we believe it to be an invasion of member’s financial privacy and will further increase the compliance burden on financial institutions. Furthermore, data security issues could potentially arise since financial institutions would be providing large amounts of private, financial data to the government, who doesn’t have the best track record of ensuring information remains secure. Additionally, the proposal would likely result in increased costs to financial institutions which could be passed on to consumers indirectly.
Credit union associations have issued an action alert calling on credit union leaders to oppose new reporting provisions that would require financial institutions to report additional detailed account holder information. All consumers are encouraged to take action and contact your members of Congress today, in opposition to this potential IRS reporting provision. Use this ready-to-send form to send your message!