A controversial plan to require credit unions and banks to report to the Internal Revenue Service the inflows and out flows from customer accounts has been dropped from the budget reconciliation plan announced by President Biden Thursday morning, according to sources familiar with the legislation.
“House Democrats who have seen the actual bill this morning say the IRS provision is not in,” said John McKechnie, senior partner at Total Spectrum. McKechnie, who said he had been briefed by senior House Ways and Means staff, added, “They are very definite on that.”
“We’re extremely pleased to see the White House has heard the hundreds of thousands of credit union advocates who expressed strong opposition to this anti-consumer proposal,” said Jim Nussle, president/CEO of the Credit Union National Association. “There is still a chance it could be inserted into the legislation as it moves forward, but at the moment we’re confident that bold, fierce 360-degree advocacy from CUNA, Leagues, credit unions, and their members has kept this proposal out of the initial framework.”
CUNA, the National Association of Federally-Insure Credit Unions and banking trade groups have been aggressively lobbying against the IRS provision.