Yesterday afternoon, House Speaker Nancy Pelosi indicated that the proposal to require credit unions and other financial institutions to report gross inflows and outflows in accounts with over $600 to the IRS would be included in a final reconciliation package.
The Biden administration has said that the proposal would strengthen the IRS's ability to crack down on wealthy tax cheats. The Treasury Department has estimated the measure would raise about $460 billion over 10 years that could be used to help offset the cost of new spending aimed at strengthening the social safety net.
CUNA and state credit union leagues across the country, including MnCUN, have mobilized to voice strong opposition to any such measure being included in a spending bill. Those efforts have led to more than 500,000 communications to members of Congress, including over 10,00 from Minnesota alone.
“Credit unions already churn out many federal tax information reporting forms. This new requirement puts credit unions in the position of policing their members and account holders,” said MnCUN Chief Advocacy and Engagement Officer Mara Humphrey. “MnCUN remains staunchly opposed to any new IRS reporting requirement and has made the case repeatedly with the Minnesota Congress delegation what a negative effect this proposal would have on credit union members.”
MnCUN and CUNA have several tools for credit union staff and members to engage with their Congressional Representatives on the issue. It is imperative for our member credit unions to encourage their staff and members to take action to head off this misguided proposal.
GREAT – MnCUN’s action alert to send messages directly to members of Congress
CUNA’s Member Activation Program – email templates to include in newsletter and communications directly to members.
The Pulse is MnCUN's newsletter that keeps credit union professionals and board members updated on current news and information.