Full Reporting to IRS of ALL Consumer Financial Activity by Credit Unions and Banks Buried in the Infrastructure Bill
As if we haven’t all seen half a dozen once in a lifetime tragedies over the past year, here comes another. Buried deep in the Democrat parties Infrastructure Bill is a requirement that all banks and credit unions provide the IRS all of our transaction data.
As noted in this WSJ excerpt:
Under the plan, banks and other payment providers would be required to tell the IRS how much money came into and out of individuals’ and businesses’ accounts each year, going far beyond the existing reporting of interest income.
At a time when Americans are already struggling, these new reporting rules would create unnecessary burdens. As noted in this excerpt from Forbes:
It may create problems, however, that should be considered and addressed as this plan works its way through Congress. For example, consider a young couple saving up to buy a home. All savings are put into the “dream home” savings account. Then, when it comes time to make the down payment, the $50,000 dream home savings goes into the regular checking account, which is then wired to the seller’s escrow account. Buying a home is not a taxable event (at least for federal income tax), selling one is. Will the IRS receive information from the financial institutions that leads to an audit?
Below is a “Connect for the Cause” email that went out Wednesday wherein the California Credit Union League is requesting your help in contacting your state representatives to let them know just how insane this is. Even if you are not in California, PLEASE contact your state representatives and voice your opinion of this Orwellian overreach.
Today, your credit union needs your help. The United States Congress is considering a measure that would impact every financial institution and taxpayer in the nation. As a piece of a large domestic spending bill, Congress is looking to have financial institution(s), including credit unions, report all transactional information about your spending habits to the Internal Revenue Service (IRS). While their intention is to go after those that cheat our tax system, unfortunately this would give the IRS new access to all of your account information plus creating an unnecessary burden on your credit union.
Under this proposal, credit unions, banks and other financial service providers would be required to annually report the total of funds flowing through your accounts including all deposits, payments, purchases and transfers to other accounts outside of your primary account.
Action needed: Please click the link below to send a pre-written letter to your Representative and Senators. This letter will let your elected officials know that this provision as written today is NOT acceptable.
Once you send your letter, please consider forwarding this action alert to a friend or colleague. Congress will only change their minds if enough credit union voices are heard!
Thank you,
California and Nevada Credit Union Leagues
California and Nevada Credit Union Leagues – CCUL
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