Why We Urge You To Oppose A New IRS Reporting Proposal
At Honor, we care about your privacy and are committed to informing you when legislation is being discussed that could directly affect you. We are strongly opposed to the following proposal and while this is not currently in effect, we highly encourage you to join us in sharing your voice to reject this new IRS reporting provision.
Here's What You Need To Know
As Congress considers critical new infrastructure spending, lawmakers are considering unconventional sources of revenue to fund their plans.
One proposal under consideration would require financial institutions, both credit unions and banks, to report to the Internal Revenue Service (IRS) how much money has gone into and out of all accounts holding more than $600. This would be such an unprecedented grab of your personal financial data and raises several concerns.
What Does This Mean For You?
- This proposal would violate consumers’ personal privacy by forcing credit unions and banks to provide the government with personal information that does not reflect any taxable activity.
- This proposal raises data security concerns as the government relies on aging data systems to store and secure IRS information. These systems have already been compromised in recent years, and the addition of this data only increases the likelihood of a future breach.
- This proposal would require financial institutions, particularly those in rural and low-income communities, to face unnecessary and expensive regulatory hurdles that could make it untenable to serve those consumers already left behind by the big banks.
What We Need From You
While this proposal is not currently in effect, we are encouraging you, as a credit union member, to join Honor in telling your state and federal lawmakers to oppose this new IRS reporting provision. To learn more and to help us tell Congress to reject this new IRS reporting provision, click here.