GOP Aligned Against IRS Reporting Requirement Proposal

Capitol Hill building

Yesterday, Republicans in the House of Representatives joined together in a letter sent to Treasury Department Secretary Janet Yellen opposing the Administration’s plan to require new Internal Revenue Service (IRS) reporting requirements for financial institutions.

Signed by more than 200 representatives (12 from California and Nevada), the letter is a response to a previously signed version by 142 GOP representatives questioning the motives and intent of the IRS reporting-requirement proposal.

Democrats are attempting to pass a “human infrastructure” package without GOP votes that requires revenue offsets. Yellen and the IRS have estimated that closing the “tax gap” on high-income earners could raise enough revenue to more than pay for this package, as well as address other budget issues.

Credit unions are not staking a claim over other pieces of the package, but they are adamantly opposed to the inclusion of these new proposed IRS requirements that would report their members’ gross cash flow.

Also, in addition to signing a coalition letter organized by 106 associations opposing this proposal, the California and Nevada Credit Union Leagues, the Credit Union National Association (CUNA), and the American Association of Credit Union Leagues (AACUL) sent a joint letter to Congress on Wednesday. It outlines how proposed revisions to the reporting requirements offered by Senate Democrats remains problematic and unworkable for credit unions.

Credit union leaders should stay tuned for further developments.

Please Keep Sending Letters: ‘Connect for the Cause’
With an overall deal imminent in the days ahead, the Leagues are still asking credit unions to engage their members through Connect For The Cause. Over 63,000 letters have been sent to Congress from California and Nevada credit union supporters out of more than 600,000 nationwide opposing the proposed burdensome IRS reporting requirement being discussed on Capitol Hill.

Several congressional offices have noted the influx of letters, emails and phones calls they are receiving from constituents opposed to this provision.

The Leagues are still asking every credit union supporter capable of sending a letter to Congress via Connect For The Cause to do so! (Email Emily Udell if you need guidance for activating your members)

You can also download, customize, and distribute the following Credit Union National Association (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.

To alter and edit a templated email for use in outreach to members, click here and scroll down.

Proposed IRS Requirement’s Burden on Financial Institutions
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 of a certain amount on all their accountholders.

This almost assures that every financial institution, fintech, and depository will report information on every single accountholder. Please have your members send as many letters to Congress as possible!

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