Financial institutions

Financial institutions urge public to act against new IRS proposal

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The public is encouraged to contact lawmakers now

MARSHFIELD, WI (OnFocus) – According to CUNA (Credit Union National Association), House Speaker Nancy Pelosi (D-Calif.) said Tuesday that expanding financial institution reporting requirements to the Internal Revenue Service (IRS ) would be included when the House considers its latest reconciliation bill.

The proposal would require financial institutions like credit unions and banks to report extensive activity on accounts with balances over $600 to the Internal Revenue Service (IRS). (Contact your legislator here.)

“Such an unprecedented seizure of someone’s personal financial data raises several concerns,” said MMCCU President David Murphy. “It’s impacting credit unions and banks, both locally and nationally.”

The CUNA, Leagues and Credit Unions strongly oppose the language, which was not present in the bill passed by the House Ways and Means Committee.

“Credit union advocacy kept this policy out of early legislative drafts, but we need your continued help to keep this policy out of Congress’s reconciliation bill,” Murphy said. “Now is the time to contact your legislator and let them know that you do not want your private account data and consumer information to be freely available to the government.”

He explained that the proposal would violate consumer privacy by requiring credit unions and other financial institutions to provide information to the government that does not reflect taxable activity.

“In addition, financial institutions, especially those in rural and low-income communities, would face a costly new regulatory burden that could make it untenable to serve consumers already being left behind by Wall Street banks,” he said. -he declares.

Finally, 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,” Murphy said.

“At MMCCU, we value civic engagement and believe it is our duty to notify you when laws are being discussed that could directly affect our members. We encourage everyone to consider lending their voice to this important effort. Click this link to learn more and email your US representative.

A bill has been proposed that would prohibit the implementation of any expanded Internal Revenue Service (IRS) financial institution reporting requirements. Rep. Ashley Hinson (R-Iowa) introduced the bill, which follows a related Senate bill introduced last week.

If you have any questions, please contact MMCCU!

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