Congress may soon require your account transactions to be reported to the IRS.

by Joe Mecca

VP, Communication / Company Spokesperson

9.27.2021
|
Articles

Take action today

As Congress considers new infrastructure spending, lawmakers are considering unconventional sources of revenue to fund their plans. One proposal under consideration would require financial institutions like Coastal to report to the Internal Revenue Service (IRS) many activities on accounts with balances over $600. Such an unprecedented grab of your personal financial data raises several concerns.  

  • This proposal would violate the personal privacy of consumers like you by forcing credit unions and other financial institutions to provide the government with an overwhelming amount of your information that does not reflect taxable activity.   
  • The government relies on decades old data systems to store and secure IRS information. These systems have already been compromised in recent years, and the addition of this type of data only increases the likelihood of a future breach of your personal financial information.  
  • Trust and privacy concerns are a primary reason some individuals choose not to open bank accounts. This proposal, if adopted, would push our most financially vulnerable populations out of the financial system, and further exacerbate the divide between the banked, underbanked, and unbanked.

In short, the proposal to include new tax information reporting requirements for financial institutions would not only impose significant compliance costs on credit unions and other financial institutions, but also infringe on the privacy, security, and financial well-being of millions of Americans.

What We Need from You  

At Coastal, we value civic engagement and believe it’s our duty to inform you when legislation is being discussed that could directly affect you. 

Please lend your voice to this important effort—visit the Grassroots Action Center to learn more, and send an e-mail to your U.S. Representative.  

Tell Congress to reject this new IRS reporting provision. 


Frequently Asked Questions

Why is this being sent to me?

At Coastal, we value civic engagement and believe it’s our duty to inform you when legislation is being discussed that could directly affect you.

Why is Coastal opposed to it?

It’s a major data security risk. We work extremely hard to ensure the security and privacy of your account information. If this passes, it would require us to send much of that data to the IRS. That’s why it’s important to contact your Representative today and tell them to stop this proposal from getting passed into law.

Who will it affect?

The details of the proposal keep changing, but each version would still include hundreds of millions individual and business financial accounts. That’s why it’s important to contact your Representative today and tell them to stop this proposal from getting passed into law.

What information might be sent to the IRS?

If the provision passes into law, it would then be on the Treasury Department to make the final determination what information would be required to be disclosed to the IRS. That’s why it’s important to contact your Representative today and tell them to stop this proposal from getting passed into law.

When is it happening? 

The bill could pass Congress any day. It has already advanced out of the Budget Committee. That’s why it’s important to contact your Representative today and tell them to stop this proposal from getting passed into law.

Tags

Back To All Articles

Social Blog Features