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Tennessee’s credit unions, built on the philosophy of people helping people, serve more than 2.4 million consumers and small businesses. Congress is considering a sweeping proposal that will require financial institutions to report to the Internal Revenue Service (IRS) detailed information on the inflows and outflows of every account totaling over $10,000 annually. This proposal is detrimental to Tennessee consumers and small businesses.

The proposal requires financial institutions to track the transactions of the individuals and businesses they serve and report that activity to the IRS. The IRS can use this information to identify those who are avoiding paying taxes. It will increase the regulatory burden on credit unions by requiring systems be put into place to determine which accounts qualify and subsequently report additional details on those accounts to the IRS.

The massive amount of new information that the IRS will collect in connection with this proposal will be overwhelming and of questionable relevance to the calculation of taxable income. This proposal creates data security, compliance burden, and customer privacy concerns.

Instead of infringing on customers’ privacy and using resources that could otherwise be focused on serving local communities, we suggest to members of Congress that they direct the IRS to close any tax compliance gap with the data and authorize the agency already has.

As the voice for Tennessee credit unions, we urge individuals and businesses served by Tennessee’s financial institutions to join us in contacting their members of Congress. Tell your member of Congress this proposal is going to hurt not help consumers and small businesses. Sincerely,

Fred Robinson

President/CEO,

Tennessee Credit Union League

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