New IRS Reporting Requirements Being Considered by Congress

Earlier this week, CUNA joined national trade groups like the American Bankers Association and the Independent Community Bankers Association in voicing their strong opposition to a proposal to impose new IRS reporting mandates on financial institutions. CUNA launched a “call to action” to members in advance of a House Ways and Means Committee meeting to consider the proposal, which would require financial institutions to report deposits and withdrawals of all business and personal accounts with a balance of more than $600.

The proposed mandates originated in President Biden’s budget, but are currently being considered as a means to subsidize the human infrastructure package Democratic leaders are trying to put together. It is widely reported that this package would be passed through the Congressional budget reconciliation process, which would only require majority support. Supporters believe the mandates would bring in increased revenues to federal coffers without raising taxes.

The League continues to closely monitor and engage in this important policy debate. We believe it is important that elected officials in Washington consider all aspects of this proposal. While it may ensure increased compliance with existing tax codes, the negative impacts—especially on credit unions—are numerous.

This will be an ongoing advocacy effort that may require increased engagement from Maine credit union leaders. Please feel free to contact the League’s Governmental Affairs Team for up-to-date information.