Possible CU Victory as IRS Requirement Not Included in Committee Bill

During NAFCU’s 2021 Congressional Caucus on Tuesday, Rep. Kevin Brady (R-Texas) told the crowd that the proposed IRS reporting requirements for credit unions and other financial institutions was removed from the budget reconciliation package currently being marked up by the House Ways and Means Committee.

The proposal from the Treasury Department would require credit unions to report gross inflows and outflows of all business and personal accounts of $600 or more to the IRS.

According to a statement from NAFCU on Tuesday, Rep. Brady said, “This is an issue of a right to privacy. I also worry this would push more people away from our credit unions, and harm rural and minority communities the most.

“We have to keep working hard to make sure it does not appear later. [...] There is a better way to close the tax gap,” he said.

Brady cautioned that the proposal could still be inserted into the bill as the budget reconciliation process moves forward.

Both NAFCU and CUNA have been sounding the alarm about the proposal for nearly two months, asking credit union leaders to vocalize their opposition to lawmakers. According to CUNA Chief Advocacy Officer Ryan Donovan, the organization put out a “call for action” to credit union advocates in recent weeks, and between 67,000 and 68,000 submissions opposing the IRS requirement have gone through CUNA’s system to congressional leaders in that time.

CU Times will update this developing story as more details emerge.