A Senate draft budget reconciliation plan released Saturday by Senate Finance Committee Chairman Sen. Ron Wyden, D-Ore., does not include plans to require credit unions and banks to report to the IRS the inflows and outflows from customer accounts.
The Senate version of the social spending legislation proposed by President Biden “is fully paid for by ensuring profitable mega-corporations and wealthiest Americans pay their fair share,” Wyden said, as he released the 1,180-page document.
The beefed-up tax enforcement provisions do not include the financial institution reporting plan.
As originally proposed in the Biden Administration’s FY 22 budget, banks and credit unions would have been required to report the inflows and outflows from customer accounts when the gross flow threshold exceeded $600. Credit union and banking trade groups mobilized customers and members to flood Congress with messages saying that plan amounted to an invasion of their privacy.
House Democrats attempted to quell that furor by increasing the gross flow reporting threshold to $10,000.
Even though the provision is out of the current draft, it still could be added as senators negotiate their version of the proposal.
Credit Union National Association President/CEO Jim Nussle said he was pleased with Wyden’s decision not to include the IRS reporting plan.
“Policymakers on both sides of the aisle heard loud and clear that this proposal would have harmed consumers and financial institutions, while setting back financial inclusion,” he said. “We will remain engaged as the Senate continues negotiations and considers potential amendments to the text.”