NAFCU Vice President of Legislative Affairs Brad Thaler today sent a letter to Senate Majority Leader Chuck Schumer, D-N.Y., and Senate Minority Leader Mitch McConnell, R-Ky., reiterating major concerns around the proposed IRS reporting requirement, which was excluded from the House-passed Build Back Better Act (BBBA) last month.
While NAFCU was pleased to see the House’s recognition of the major concerns surrounding the proposal, several compromises have been floated in an attempt to push the legislation forward in the Senate version of the reconciliation package.
“We believe that requiring credit unions and other financial institutions to report on gross inflows and outflows stands to pose more costs and burdens on community institutions with uncertain returns,” wrote Thaler. “Furthermore, various compromises that have been floated, such as raising the reporting threshold above $10,000 or not counting direct deposits of paychecks or various payments, do not address the problems with this provision.”
Thaler notes that because the provision focuses on “new reporting concept of account flows, and not income, most Americans stand to be caught up in this new scheme even at a higher threshold and will face a level of consumer confusion because of it.”
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