Data privacy and security concerns are among the main issues with the proposed increased reporting requirements, CUNA wrote to Sens. Tommy Tuberville (R-Ala.) And John Thune (RS.D.) Tuesday in support of their bill that would prevent the implementation of a proposal requiring financial institutions to report large amounts of account information to the Internal Revenue Service (IRS).
âWe are also concerned about the effect this proposed new requirement will have on credit unions. Data privacy and security are paramount issues for credit unions and their members, âthe letter said. 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. “
CUNA adds that small credit unions would be particularly affected by this new proposal.
“From increased costs of software upgrades to staff training, smaller institutions may need additional financial resources and implementation time to meet the new requirements of the proposal,” the letter said. .
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, more than 275,000 messages have been sent.
Credit unions can also activate their members to send messages to Capitol Hill through CUNA Membership Activation Program (MAP) Community.