The League of Southeastern Credit Unions & Affiliates (LSCU) on Tuesday commended Republican members of Alabama’s congressional delegation for opposing an IRS proposal which it says would undermine consumers’ privacy protections.
Four GOP members of Alabama’s congressional delegation cosigned a letter authored by U.S. Rep. Tom Emmer (R-MN) which seeks to protect financial institutions from what the congressmen deem to be burdensome regulations.
U.S. Reps. Mo Brooks (R-Huntsville), Jerry Carl (R-Mobile), Barry Moore (R-Enterprise) and Mike Rogers (R-Saks) each cosigned Emmer’s letter.
The letter was sent to House Speaker Nancy Pelosi (D-CA), Ways and Means chairman Richard Neal (D-MA), Department of Treasury Secretary Janet Yellen, and Internal Revenue Service (IRS) commissioner Charles Rettig.
The Biden administration recently proposed a provision which would require credit unions and banks to report to the IRS the inflows and outflows of funds on accounts holding in excess of $600.
LSCU says the proposal significantly increases the reporting requirements for credit unions and banks and believes it extends the reach of the IRS into the private lives of Alabama consumers.
Patrick La Pine, CEO of LSCU & Affiliates, contends that the newly-proposed IRS provision would place an undue burden on the banking industry and infringe upon consumers’ right to privacy.
“This access to consumers’ personal financial information raises serious security concerns and only increases the threat of data breaches,” said La Pine. “Furthermore, by forcing financial institutions to provide to the government information that does not reflect taxable activity, financial institutions in rural communities, including credit unions, would face additional burdensome compliance requirements at a time when all business are facing staffing issues due to the pandemic.”
In a release, LSCU thanked the Alabama congressmen for their opposition to the proposal and “their work to protect taxpayers and financial institutions alike.”
While the legislation released Friday night by House Ways and Means chairman Neal does not include this requirement, a version of this provision may be offered during this week’s committee meetings.
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL