WASHINGTON—CUNA and NAFCU have joined with a group financial trade associations and other organizations in writing to both the House and the Senate to share concerns about the new tax reporting requirement included under the Treasury Department's proposal.
That proposal would require financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts, as well as transfers between accounts of the same owner, over $600 a year.
"Collection of comprehensive financial account data to determine tax liability must be narrowly targeted," wrote the trade organizations in the letter. "Treasury’s indiscriminate, blanket data collection would be unsupported by any reasonable suspicion of tax evasion."
In addition, the group argued the proposal would create taxpayer complexity and confusion, may undermine the goal of reducing the unbanked population, and may pose data security concerns for taxpayers' data.
"We urge Congress to reject the Treasury proposal and explore less intrusive means of reducing the tax gap," concluded the group.