A recent proposal in Congress would require credit unions and banks to report to the Internal Revenue Service (IRS) on the amount of funds that have gone into and out of accounts with balances of at least $600, or at least $600 in deposits and withdrawals.
This proposed regulation is meant to uncover super-high earners and corporations who may be evading taxes. The Treasury acknowledges that 99% of regular and salary wage earners across the U.S. accurately report their income. Unfortunately, this proposal would expose the financial activity of all consumers and businesses to find the rare few who may be cheating the system.
O Bee does not endorse this broad access to our members’ account information, and it raises several alarms:
- It would create an unacceptable invasion of privacy for our members.
- It would push more people away from a banking relationship and towards costly and often untrustworthy alternatives.
- All changes come with a cost. O Bee (and our members) will pay the cost of implementing system changes to track this information.
- The IRS has a questionable track record when it comes to securing private information. The addition of this type of data may overload the IRS with more information than it can possibly handle and increase the risk of a future breach.
The Bottom Line: We work for our members and the proposed measure is not in the best interest of our members. Act now. Please write to your US Senators and US Representatives today.
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Subject: Oppose New IRS Reporting Provisions
Please oppose any measure that would turn my private financial information over to the IRS.
I am deeply concerned with the federal government having access to my credit union account transactions. I am also worried about the government's ability to keep information like this secure from data breaches.
Don't jeopardize my privacy or security.