oppose the new IRS reporting proposal
KCCU wants to make sure that our members are always informed of any kind of legislation that could impact you and your accounts. We are concerned about a current Internal Revenue Service (IRS) reporting proposal that is being discussed and we are asking you to join us in opposing this new policy. This proposal is not currently in effect and we’d like to stop it as it does not have our members best interest in mind.
The proposal raises concerns regarding customer privacy, data security, increased compliance costs, and potential damage to member relationships for credit unions as well as all financial institutions across America.
What is the new proposal?
As Congress considers critical new infrastructure spending, policymakers are eying unconventional sources of revenue to fund their plans.
The proposal under consideration would require all financial institutions to report to the IRS the inflows and outflows on all personal and business accounts with a balance of $600 or more.
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 unsustainable to serve those consumers already left behind by big banks.
- We are concerned about data security as 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.
How can you help?
KCCU will be opposing this proposal and we ask you to join us in telling your state and federal lawmakers to oppose this new IRS reporting proposal. Please take a moment to follow the link below to the Credit Union National Association webpage where they have drafted an email you easily and quickly can send to our local legislation.