CUNA wrote in Support of a House bill Wednesday that would ban the implementation of increased reporting by financial institutions to the Internal Revenue Service (IRS), law prohibiting IRS financial oversight (HR 5586). The bill was introduced by Rep. Drew Ferguson (R-Ga.).
âThis new proposal would result in banks and credit unions reporting sensitive account details to the IRS that are not in themselves taxable events. This would leave the IRS with a huge amount of personal financial data that would be used in a way that is not detailed in the proposal. It’s risky and dangerous, âthe letter said. âWe are also concerned about the effect this proposed new requirement will have on credit unions. Data privacy and security are of primary concern to credit unions and their members.
Whether it’s the massive data breach at the Federal Office of Personnel Management in 2014 or this year’s IRS leak of the federal income tax returns of many wealthy Americans, we still doubt that this data will remain protected and private from hackers and other malicious individuals, âhe adds.
A similar CUNA-backed bill was introduced by Rep. Ashley Hinson (R-Iowa) earlier this month.
CUNA has issued an action alert calling on credit unions to send concerns to Capitol Hill using its Popular action center. As of this week, nearly 600,000 messages have been sent.
Credit unions can also activate their members to send messages to Capitol Hill through CUNA Membership Activation Program (MAP) Community.