WASHINGTON—Although it was not included in the version of the Build Back Better Act passed by the House last month, NAFCU has sent a letter to Senate Majority Leader Chuck Schumer (D-NY) and Senate Minority Leader Mitch McConnell (R-KY) reiterating “major concerns” around the proposed IRS reporting requirement.
While NAFCU said it was pleased to see the House’s recognition of the “major concerns” surrounding the proposal, the trade group said it remains wary as several compromises have been floated in an attempt to push the legislation forward in the Senate version of the reconciliation package.
“We believe that requiring credit unions and other financial institutions to report on gross inflows and outflows stands to pose more costs and burdens on community institutions with uncertain returns,” wrote Vice President of Legislative Affairs Brad Thaler. “Furthermore, various compromises that have been floated, such as raising the reporting threshold above $10,000 or not counting direct deposits of paychecks or various payments, do not address the problems with this provision.”
Thaler told the Senate that because the “new reporting concept of account flows, and not income, most Americans stand to be caught up in this new scheme even at a higher threshold and will face a level of consumer confusion because of it.”
‘Invasive Reporting’
The provision also stands to greatly affect all working Americans, “subjecting them to this invasive reporting regime and putting them potentially under greater IRS scrutiny,” NAFCU went on to say, adding that financial institutions such as credit unions are already subjected to a wide range of reporting responsibilities and compliance burdens.
While NAFCU said it supports efforts to increase taxpayer compliance, adding another reporting requirement, one that lacks greater analysis and study of its efficacy, would incur significant costs and burdens for credit unions, possibly redirecting resources away from consumers, the trade association said.
“This provision cannot be fixed and should be rejected outright,” stated Thaler.
NAFCU Execs Named Top Lobbyists
Separately, both Thaler and NAFCU President and CEO Dan Berger have been recognized as top association lobbyists by The Hill for 2021, a daily newspaper covering Congress and Washington D.C.
This marks the 19th consecutive year that Berger has been named on this list and the 14th year for Thaler.
“NAFCU is again grateful for this recognition which demonstrates all the hard work our diligent board of directors, committed members, and exemplary staff do for the credit union industry,” said Berger. “We take this acknowledgment as a sign of success towards our direct efforts to fight for all credit unions and the 127 million American consumers they serve.”