In a joint letter to President Joe Biden, Treasury Secretary Janet Yellen, Senate Majority Leader Chuck Schumer, D-N.Y., and Speaker of the House Speaker Nancy Pelosi, D-Calif., NAFCU and several associations representing cooperative businesses voiced their strong opposition against the proposed IRS reporting requirement. The Administration and Congressional leaders last week outlined a new reconciliation package framework that backs away from the provision, however, the final legislation and bill text could still contain the reporting requirement.
The authors of the letter, who focus on member-owned and controlled enterprises, noted that while they “share the Administration’s goal of building a more inclusive and equitable financial system,” this invasive reporting regime is not a sound solution to achieving that goal.
“This approach fails to adequately reach people who are cheating our nation’s tax laws and instead places undue burdens on average consumers and their financial institution,” wrote the associations. The reporting requirement would spotlight inflows and outflows of essentially all taxpayers, including low-income consumers, with transactions for childcare, rent, or student loans potentially exceeding the threshold.
The group also reiterated that the members they serve, including cooperatives and credit unions, “operate on thrift and in the best interest of the people and community they serve, not outside shareholders.”
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