As Congress considers new infrastructure spending, lawmakers are exploring unconventional sources of
revenue to fund plans. One proposal effects Willis-Knighton Federal Credit Union and our members. The
original proposal required that your credit union (along with other financial institutions and popular
apps like Venmo and PayPal) report to the Internal Revenue Service (IRS) how much money has gone into
and out of all accounts with more than $600 in them.
As of October 20, 2021, the proposed amount was raised to $10,000. The Treasury Department said the
proposal would exclude “wage and salary earners and federal-program beneficiaries, such that only those
accruing other forms of income in unclear ways are a part of the reporting regime.”
The proposal is designed to close the tax gap. The financial reports would allow the IRS to compare how much cash came through a person’s accounts to how much was reported each year on income tax forms. That can include cash not reported by those who don’t list all their tips, people doing gig work for cash, side jobs paid in cash, people who sell crafts or products from home. This possible unprecedented access to your finances violates your personal privacy by forcing credit unions and banks to provide the government with information that does not reflect taxable activity.
Credit unions strongly object to this proposal and have submitted thousands of messages to congressional leaders. The messages highlight that the new IRS bank account mining would:
At https://www.cuna.org/advocacy/actions/grassroot-action-center.html?vvsrc=%2fcampaigns%2f87852%2frespond, credit union members can send a customizable message to their U.S. Representative expressing concern with the proposal and urging opposition.
The Louisiana credit union movement will continue speaking out against this threat to consumer privacy and credit union operations. Know that we will not simply hand over personal information at any time without it being required by law.
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