Update on IRS Reporting Provision

​Late last week, the U.S. House, following passage from the Senate this summer, passed the $1.2 trillion infrastructure bill. The package was then signed into law over the weekend by President Biden. The bill includes:

•  $110 billion for roads bridges and other major projects,
•  $66 billion for passenger and freight rail,
•  $39 billion for public transit,
•  $65 billion for broadband, and
•  $55 billion for water systems, including efforts to replace aging lead pipes.

The infrastructure bill is one part of the President’s larger economic agenda, with the other being a social safety net and climate spending package. The agreement struck last week between House Democrats to take up the infrastructure bill included a procedural vote to advance the other bill from the Rules committee and to the floor, where it can be taken up any time. This was the proposal that originally included the provision to require credit unions to report gross inflows and outflows of cash of $600 or more to the IRS as a means to enhance tax compliance.

That IRS reporting provision, after nearly 1 million messages were sent to members of Congress from credit union members across the country, has been left out of the proposal in a huge win for our grassroots advocacy. That said, the proposal is never finalized until the last vote has taken. Credit unions are encouraged to be ready to continue to engage with their elected Representatives to ensure its not added back in at a later time.