Credit unions like OE Federal need your support. The Internal Revenue Service (IRS) is proposing a measure that would impact every financial institution and taxpayer.
The proposed regulation is looking to have financial institution(s), both credit unions and banks, report how much money has gone into and out of all accounts with a balance of $600 or greater.
We have received some questions about this proposed regulation. Here are some important key takeaways:
The regulation has to do with totals, not transactions. The proposed regulation would have financial institutions report gross (total) inflows and outflows on all accounts. This will include a breakdown for physical cash, transactions with a foreign account, and transfers to and from another account with the same owner.
Currently, the proposed regulation would require reporting on all accounts with a balance of more than $600. Lawmakers are discussing the required disclosure level to be increased to $10,000 rather than $600.
While their intention is to go after those that cheat our tax system, unfortunately this creates an unnecessary burden on credit unions.
While this proposal is not currently in effect, please consider clicking here to send a pre-written letter to your Representative and Senators. This letter will let your elected officials know that this provision as written is not acceptable.