IRS Requirement: All Hands on Deck; MORE Letters are Needed

Capitol Hill building

Every credit union supporter capable of sending a letter to Congress opposing the proposed burdensome Internal Revenue Service (IRS) reporting requirement is being asked to do so — TODAY. And for those already sending a letter via Connect For The Cause, please do so again!

As a result of California and Nevada credit unions’ efforts, this burdensome IRS reporting proposal was not included in the first draft of the House Ways and Means Committee bill on the $3.5 trillion human-infrastructure legislation being considered in Congress.

However, a tax-writing committee in the Senate has agreed to a formal list of revenue-raisers to help pay for the anticipated infrastructure package — which included a tentative agreement on the IRS requirement by party leaders.

While details are still forthcoming, NOW is the time for MORE opposition letters. Please have credit union supporters send as many Connect For The Cause letters to Congress as possible — even those who have already done so! (See materials below for reaching out to YOUR credit union members)

“This latest news does not mean party leaders have enough votes within their respective parties to pass this bill as-is,” said Jeremy Empol, vice president of federal government affairs for the California and Nevada Credit Union Leagues. “Nothing is final right now. It simply means we need to raise our voices even LOUDER.”

So far, 35,000 letters have been sent to Congress from California and Nevada out of 260,000 nationwide. You can view a congressional district map for both states, showing where more letters are needed (lighter blue areas) versus districts where credit union supporters have thoroughly made their voices heard (darker blue). Email Emily Udell if you need guidance for activating your members.

The proposed IRS requirement 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.

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)

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