WASHINGTON—NAFCU has written to Rep. Drew Ferguson (R-GA) expressing the trade association’s support for his newly introduced bill the Prohibiting IRS Financial Surveillance Act, which would prohibit the implementation of the IRS reporting requirements for all accounts with $600 or more in outflows or inflows in a given year.
The letter was sent ahead of an announcement that congressional Democrats and the Biden Administration are dialing back the scale of an IRS reporting proposal.
Both credit union trade groups along with numerous state associations and members themselves have been loudly pushing back on a proposal Speaker of the House Nancy Pelosi (D-CA) has indicated will be included in any final House legislation. The Biden Administration has made the proposal a priority as it seeks out additional revenues to offset the trillions of dollars in proposed new spending.
NAFCU Vice President of Legislative Affairs Brad Thaler said Ferguson’s legislation addresses a number of issues that are priorities of the trade group, including protecting consumers’ financial privacy.
“TheProhibiting IRS Financial Surveillance Act would prohibit the IRS from enacting this invasion of privacy into countless American’s daily lives,” wrote Thaler. “At any threshold, requiring credit unions to report on gross inflows and outflows poses regulatory costs and challenges while threatening to reduce participation in financial services and invade the privacy of millions.”
Opposition Reiterated
Ahead of the developments that the IRS reporting proposal may be more limited than originally announced, Thaler reiterated NAFCU’s opposition to the IRS reporting requirements, arguing they create privacy concerns and additional burdens, and urged Congress to instead focus its efforts on “better solutions for taxpayer compliance, such as increased funding and support for IRS improvements.
“We thank you for introducing this critical legislation to protect both the banking system and consumers from a burdensome reporting regime,” concluded Thaler.