IRS Tax Reporting Provisions
Dear Mainstreet Member,
At Mainstreet Credit Union, we are invested in your financial well-being and providing you with a safe environment to keep your finances. We want everyone to be informed about what is being proposed in the Congress that could affect you.
The current administration proposed a new feature of the 2022 budget that would require all banks and credit unions to report money moving in and out of accounts with at least $600 or at least $600 worth of transactions for all personal and business accounts to the IRS.
How will this affect me? Here is an example that will help to explain how the proposal will affect your finances. If you had at least $600 in your account, we would be required to report the amounts of any debits or credits of that account to the IRS. If the debits and credits that go into or out of the account add up to at least $600 — including deposited paychecks or electronic payments tied to the account — those totals would also be reported.
This requirement would include most bank, loan, and investment accounts. The IRS Commissioner and the Biden Administration have stated the primary purpose of this requirement is to help the IRS improve tax collections and enforce tax compliance.
These IRS reporting provisions bring multiple concerns for credit unions and their members. This includes maintaining members’ privacy and data security and imposing greater reporting burdens on credit unions.
To oppose the proposal and to keep your finances safe, contact your Congress member to express your concerns.
Here’s how you can help in three easy steps:
- Visit the Credit Union National Association’s advocacy website at cuna/advocacy.org
- Fill in your name, address, email, and enter Mainstreet as your credit union
- Click “Send Message”
If you have any questions or concerns about the proposal, reach out to us at Mainstreet or visit CUNA.org to learn more information.
Sincerely,
Mainstreet Credit Union