Tell Congress to Oppose New IRS Reporting Provisions

As Congress considers critical new spending, policymakers are eying unconventional sources of revenue to fund their plans. 

One proposal under consideration would require credit unions and other financial institutions to report to the Internal Revenue Service (IRS) how much money has gone into and out of many consumer accounts.

This unprecedented access to consumers’ personal financial data raises several concerns. 

·         This proposal would violate consumers’ personal privacy by forcing credit unions and banks to provide the government with information that does not reflect taxable activity.

·         The government relies on decades old data systems to store and secure IRS information. These systems have already been compromised in recent years, and the addition of this type of data only increases the likelihood of a future breach.

·         Financial institutions—particularly those in rural and low-income communities—would face unnecessary and expensive regulatory hurdles that could make it untenable to serve those consumers already left behind by Wall Street banks.  

OCCU does not support nor endorse this broad access to our members’ account information. In addition, Credit Union members from coast to coast have grave concerns with this proposal to expand financial institution reporting to the Internal Revenue Service (IRS). CUNA (Credit Union National Association), which is the American Association of Credit Union Leagues and all 35 Leagues have all recently written a letter of opposition to this proposal to Congressional Leadership. The letter states “This proposal represents an unprecedented overreach of the federal government into the everyday lives of virtually every American.” In addition, “And we are concerned that it could have a profound negative impact on the unbanked, the underbanked, communities of color, immigrant, and low- and moderate-income households to the extent that it would discourage financially vulnerable individuals from choosing to access mainstream financial services.”

Compose your message to congress here.