Protect Your Privacy! Stop the IRS from Looking at Your Account

Take Action: Tell Congress to oppose new IRS reporting provisions

Credit unions are closely monitoring an onerous tax provision being considered in a proposed $3.5 trillion “Build Back Better Act” reconciliation package. One measure for this legislation that has been discussed is a proposal by the Treasury Department to require financial institutions to report additional account holder information in an enhanced annual I.R.S. Form 1099-INT.  The House Ways and Means Committee completed its markup of draft infrastructure legislation without the troublesome IRS reporting provision. However, negotiations on the legislation are ongoing and it could still be added before this bill becomes law.

There have been some changes to the proposal but it would still require credit unions and banks to report the inflows and outflows of funds to accounts that have $10,000 or more flowing through over the course of the year. Whereas the Form 1099-INT currently reports taxable activity, this new reporting requirement would not reflect any taxable activity. Instead, what the administration hopes the IRS would be able to do is to use this enormous data grab to identify unreported taxable income. But it’s not clear how the IRS will use this data to accomplish its goal. Further, the federal government’s history of keeping this type of data secure is dubious at best. There may be some exceptions for payroll and Social Security income, but that would only make the process more complicated and costly.

What is certain is that if it is enacted, this proposal will increase the already high compliance burden on all financial institutions. It will also fundamentally change the nature of the information depository institutions are required to report on their account holders, creating new concerns regarding data security and privacy.

Credit union associations have issued an action alert calling on credit union leaders to oppose new reporting provisions that would require financial institutions to report additional detailed account holder information. All consumers are encouraged to take action and contact your members of Congress today, in opposition to this potential IRS reporting provision. Use this ready-to-send form to send your message!

Natco Receives Dora Maxwell Award

Natco Recognized As First Place State Level Recipient

Indiana Credit Union League announced that Natco Credit Union was selected as the first-place winner of the Dora Maxwell Social Responsibility Community Service Award for Indiana in the asset size of $50 million to $250 million.

Dora Maxwell was a credit union pioneer who worked with numerous organizations to improve the living standards of the poor and needy. Many years ago, the Dora Maxwell Social Responsibility Recognition Program was established to encourage involvement in community projects and activities.

Each year, credit unions across Indiana have the opportunity to compete with other credit unions in their asset category for the Dora Maxwell award. This year, we submitted an entry based on our Volunteer Individual Tax Assistance (VITA) program offered through Natco Community Empowerment Center (NCEC). The two-person staff of NCEC found innovative and transformative ways to provide safe alternative methods for collecting tax information and providing finalized returns. During the most recent tax season, they prepared and submitted a total of 1158 returns totaling $1.5 million in Federal refunds and $185,000 in State refunds. By offering this free service, individuals and families saved nearly half a million dollars ($497,940) in fees*. When spent locally, businesses in our area and our economy were stimulated.

On September 10th, Natco Credit Union was recognized as the first-place state winner in the $50 – $250 million asset category. Cindy Duke, CEO, Sherry Dillon, Director of Administration and Innovation and Doug Macias, Community Development Officer accepted the award during the Indiana Credit Union League Convention. As the first-place winner, our entry was forwarded to CUNA (Credit Union National Association) for the national competition.

Natco Receives Dora Maxwell Award