Press
House Rules Committee Considers NAFCU-Sought 1099 fix in vote slated for today
WASHINGTON, D.C. (June 10, 2015) — National Association of Federal Credit Unions (NAFCU) Senior Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement in response to reports that the House Rules Committee today will consider a manager’s amendment to trade legislation that would leave current interest reporting on IRS Form 1099 unchanged but increase penalties for noncompliance. The full trade package is slated for action Friday.
“We appreciate the House leadership heeding the serious concerns we expressed regarding this onerous amendment,” said Hunt. “Removing this troublesome measure is a common-sense solution that will help avoid greater regulatory burden on credit unions.”
Currently, the Senate-passed Trade Preferences Extension Act of 2015 (H.R. 1295) includes a provision in Section 603 that would revise current law to require credit unions, banks and broker/dealers to report to the IRS and members and customers information related to all interest-bearing and non-interest bearing accounts.
Now, information reports are not required on non-interest-bearing accounts, and there is currently a $10 threshold for reporting on interest-bearing accounts. Reports are filed on Form 1099-INT.
NAFCU and several other financial industry trades wrote House and Senate leaders last week warning the change would impose substantial costs on the financial services industry that far exceed the revenue that would be gained by it. NAFCU lobbyists have been working with the backers of the bill to remove this provision.
The House Rules Committee today is reviewing next steps for the trade package, including the above-noted manager’s amendment from House Ways and Means Committee Chairman Paul Ryan, R-Wis.
The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.