Congress Needs to Hear from CU Members on IRS Proposal

IRS

Nearly 4,000 credit union supporters across California and Nevada have sent 12,000 letters to their congressional representatives opposing a burdensome IRS reporting-requirement proposal in Washington, D.C. — but MORE letters are needed.

If you haven't done so, please invite your credit union’s members, volunteers and employees to visit the California and Nevada Credit Union Leagues’ Connect For The Cause webpage, asking them to send a letter to Congress (see materials below for reaching out to credit union members).

The proposed IRS requirement — embedded within the proposed $3.5 trillion spending package in Congress — would amount to a major compliance burden on credit unions, as well as an invasion of their members’ privacy. The intention behind the proposed requirements is to go after tax cheaters, but it would unfortunately give the IRS new access to private information. Financial service providers would have to report gross cash flows greater than $600 on all their accountholders.

This almost assures that every financial institution, fintech and depository will report information on every single accountholder.

Over the next two weeks, the House Ways and Means Committee is likely to consider this proposal. The Leagues need the grassroots strength of all credit unions across California and Nevada to get the point across to their congressional representatives that this is a bad idea. The Leagues and the Credit Union National Association (CUNA) are working together to combat this proposal.

How Can Your CU Activate Members?
It’s simple — just download, customize, and distribute the following CUNA-provided social media materials: Facebook post, Instagram post, and Twitter post. Please use these to redirect members to our Connect For The Cause webpage on this particular issue.

Additionally, you can alter and edit the following email as you see fit to educate and activate your members and/or employees:

From: (insert your credit union, CEO, or credit union member’s name)
(Right here, insert your credit union logo or header here — with graphics between 600 – 700 pixels wide, usually 100 – 200 pixels high)
Subject Option 1: Contact Your Lawmaker Today!
Subject Option 2: New IRS Proposal Could Affect Your Account 

Dear Member,

As Congress considers new infrastructure spending, lawmakers are considering unconventional sources of revenue to fund their plans. One proposal under consideration would require financial institutions like [credit union name] to report to the Internal Revenue Service (IRS) many activities on accounts with balances over $600. Such an unprecedented grab of your personal financial data raises several concerns. 

(“TAKE ACTION NOW” button goes here)

  • This proposal would violate the personal privacy of consumers like you by forcing credit unions and other financial institutions to provide the government with information that does not reflect taxable activity.
  • Financial institutions—particularly those in rural and low-income communities—would face a new and expensive regulatory burden 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 of your personal financial information.

What We Need From You:

At [credit union name], we value civic engagement and believe it’s our duty to inform you when legislation is being discussed that could directly affect you.  

Please consider lending your voice to this important effort — visit this Connect For The Cause webpage to learn more and send an e-mail to your U.S. Representative.

Tell Congress to reject this new IRS reporting provision. 

Thank you for your time. 

Sincerely,

(Insert your credit union and/or CEO’s name here) 

League Contacts and Questions
Please have your members act TODAY! The goal of this Connect For The Cause campaign is to activate your members to tell Congress to reject this proposed IRS requirement.

If you have questions, email Jeremy Empol or Emily Udell.

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