RBFCU Statement on Proposed IRS Reporting Requirements
RBFCU urges lawmakers to reject any legislative effort to place new IRS reporting requirements on credit unions, and asks Congress to explore other avenues to increase tax compliance.
This unprecedented access to consumers’ personal financial data by the IRS raises several alarms:
- This proposal would violate consumers’ personal privacy by forcing credit unions and banks to provide the government with information that does not reflect taxable activity.
- Financial institutions — particularly those in rural and low-income communities — would face unnecessary and expensive regulatory hurdles that could make it unfeasible to serve those consumers already ignored by Wall Street banks.
- 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.
We encourage our members to let your congressional representatives know that you oppose this issue. Visit the “Grassroots Action Center” on the Credit Union National Association’s (CUNA) website at www.cuna.org and fill out the form under “Tell Congress to Oppose New IRS Reporting Provisions” to email your lawmakers.