Tell Congress to Oppose New IRS Reporting Provisions
At Partner Colorado, we believe it's important to keep you informed about national issues and policies that may affect you. As Congress considers critical new infrastructure spending, policymakers are eying unconventional sources of revenue to fund their plans.
Recently, the current administration proposed a new feature of the 2022 budget that would require all banks and credit unions, including Partner Colorado, to report accounts with at least $600 or at least $600 worth of transactions for all personal and business accounts to the Internal Revenue Service (IRS).
For example, if you had at least $600 in your account, we would be required to report the amounts of any debits or credits to that account to the IRS. If the debits and credits that flow through the account add up to at least $600 — including deposited paychecks or electronic payments through smartphone apps tied to the account — those totals would have to be reported, too.
This requirement would include most bank, loan and investment accounts. The IRS Commissioner and President Biden have stated the primary purpose of this requirement is to help the IRS improve tax collections and enforce tax compliance.
This unprecedented access to consumers’ personal financial data raises several alarms.
- 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.
- 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.
- 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.
We could use your help in telling Congress to oppose this provision.
Here’s how you can help in three easy steps:
- Visit the Credit Union National Association’s advocacy website at CUNA.org
- Fill in your name, address, email, and enter Partner Colorado as your credit union
- Click “Send Message"