NAFCU President and CEO Dan Berger addressed Congress’ recent Fiscal Year 2022 Budget Resolution and its proposed IRS reporting requirements last week in a new CUinsight op-ed. Under this proposal, financial institutions would be required to file an annual information return for all business and personal accounts based on the inflows and outflows each year on any account with over $600 in activity. NAFCU believes that stopping these new reporting requirements would be most beneficial to credit unions and their members.
“We have been proactive in our efforts to educate policymakers about the detrimental impact this would have on credit unions,” said Berger. “In our advocacy efforts, we have underscored the need for policymakers to focus on better solutions for taxpayer compliance – such as increased funding and support for the IRS.”
In the op-ed, Berger states that the proposal poses more costs on community institutions than benefits, referencing a recent NAFCU letter to the U.S. House of Representatives that supports this claim.
“More reporting requirements can create more challenges for the IRS, who is already underfunded and understaffed,” concluded Berger. “The recent proposal places an unnecessary burden on credit unions. The IRS should focus its attention on data it already has access to, and our team at NAFCU is committed to protecting credit union interests on this pressing issue.”
NAFCU continues to monitor developments on the tax provisions of the reconciliation package. While the bill marked up by the House Ways and Means Committee this week did not include the provision, the Biden Administration is reportedly engaged in conversations with Chairman Richard Neal, D-Mass., to advance the additional reporting requirements.
Yesterday, in response, the association launched a new round of grassroots efforts on the proposal to urge credit unions to step up engagement on this issue to warn lawmakers about the impact and to reject the latest efforts to include it.
Click here to read Berger’s full op-ed.
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