Trade Groups Say IRS Coronavirus Payment Process is Confounding Credit Unions, Members

The Internal Revenue Service’s portal to provide information to consumers about their federal coronavirus Economic Impact Payments is providing inaccurate information to many financial institutions and their customers, creating confusion for everyone involved, trade groups said last week.

“The information provided by the portal is often inaccurate, causing confusion for recipients because it is not updated in a sufficiently timely manner, resulting in erroneous messages to recipients,” groups including the Credit Union National Association, the National Association of Federally-Insured Credit Unions, the American Bankers Association and the Independent Community Bankers of America, wrote in a letter to IRS Commissioner Charles Rettig.

Biden Signs PPP Extension Legislation

President Biden on Tuesday signed legislation that will extend the deadline for businesses to apply for Paycheck Protection Program loans from March 31 to May 31.

The legislation, H.R. 1799, also allows the Small Business Administration to continue to process loans until June 30. This will allow loans that are in the pipeline on May 31 to be processed.

Senators Introduce Legislation to Increase NCUA Loan Maturity Cap

Saying that federal law hampers lending by credit unions, two senators have introduced legislation that would increase the loan maturity cap of 15 years on credit union loans to 20 years.

Sens. Tim Scott (R-S.C.) and Catherine Cortez Masto (D-Nev.) have pushed similar legislation in the past, but Cortez Masto said the pandemic has increased the need for credit unions to have more flexibility to offer loans to members.