New Proposal Could Affect Your Account
Many members have questions about the new government proposal that would require banks and credit unions to report transaction activity on accounts with balances of $600 or more. If approved, the IRS would be able to compare the money coming in and out of your accounts to your tax return. The proposal aims to fund additional spending plans through unreported taxable income. There are a few things you should know:
- This proposal would violate the personal privacy of consumers like you by forcing credit unions and other financial institutions to provide the government with information that does not necessarily reflect taxable activity.
- Financial institutions—particularly those in rural and low-income communities—would face a new and expensive regulatory burden that could make it difficult to serve consumers already left behind by Wall Street banks.
- The government relies on outdated data systems to store and secure IRS information. These systems have been compromised in recent years, and the addition of this data may increase the likelihood of a breach of your personal financial information.
What Can You Do
At Credit Union of America, we value civic engagement and believe it’s our duty to inform you when legislation is being discussed that could directly affect you.
You can learn more about the proposal and send an e-mail to your U.S. Representative to reject the new IRS reporting provision. To lend your voice to this important effort, click here.