Association calls on credit unions to express opposition to IRS reporting provision

The New York Credit Union Association’s advocacy team today thanked the credit union advocates who have taken action on the proposed IRS reporting provision that would require financial institutions to report to the IRS how much money has gone into and out of many members’ accounts, and encouraged continued advocacy on the matter.

The Association continues to urge credit union advocates to visit CUNA’s Grassroots Action Center and submit a pre-drafted letter to members of Congress expressing opposition to this matter — even if they have already done so.

Advocates are also encouraged to share information about this issue with their membership, who can also utilize the Action Center to send an email to their members of Congress (neither the Association nor CUNA will contact members directly, but you are welcome to share information about this issue with them).

“The Association has had multiple conversations with our members of Congress about this provision, and while we have made progress, we are not out of the woods yet when it comes to this deeply flawed proposal,” the message stated. “Leadership in the House recently expressed their support publicly for this measure, underscoring our need to stay united and engaged as a movement. Let’s keep the pressure on Congress and let them know how flawed, invasive and onerous this proposal is.”

In a letter to legislators in September, William J. Mellin, Association president/CEO, said that that there is already a robust reporting structure in place ensuring credit unions do their part to report suspicious activity. Specifically, credit unions are subject to the BSA-AML, which are designed to detect tax evasion, money laundering and other crimes

“What would set this mandate apart from existing requirements is that this would be the first to require ongoing policing of all accounts without any cause,” Mellin stated. “Collection and transmission of financial data should be targeted and justified to not violate a consumer’s fair expectation of privacy.”

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