In a joint trade letter sent to Congress Thursday, NAFCU called on Congress to reject the proposed IRS reporting requirement under consideration in the budget reconciliation package, which is still making its way through Congress.
In the letter, NAFCU and a group of over 100 associations representing a wide range of industries voiced objections against the proposal stating that while the intent of the requirement is to help the IRS identity those committing tax fraud, “the unintended consequence is the overly broad proposal will directly impact almost every American and small business with an account at a financial institution.”
While several compromises to the proposal have been floated, such as increasing the de minimis threshold from $600 to $10,000 and excluding certain types of transactions, the group noted that this “will not significantly reduce the scale of this new IRS program.”
“These new proposed exceptions only add significant operational complexity for financial institutions and will not materially reduce the tens of millions of American taxpayers who would be captured by the new reporting regime,” wrote the group.
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