News & Announcements

New IRS Proposal Could Affect Your Account

Dear Members,

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 Baylands Family Credit Union to expand its reporting to the Internal Revenue Service (IRS).  While financial institutions report taxable activity on IRS Form 1099-INT for example, this proposal would have institutions reporting nontaxable activity, including detailed information on the inflows/outflows of every member account with a balance of more than $600.  The IRS plans to use this information in an attempt to identify unreported taxable income.

This proposal represents an unprecedented grab of personal financial data, adds a significant new compliance burden for credit unions, and raises additional concerns.

  • We believe you should have a reasonable expectation of privacy when it comes to your bank accounts and this legislation, in our opinion, threatens this expectation by forcing credit unions and other financial institutions to provide the government with information that does not reflect taxable activity.
  • Financial institutions - particularly those in rural and low-income communities - would face a new and expensive regulatory burden that could make it untenable to deliver services.
  • 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 data breach of your personal information.

Baylands Family Credit Union rarely engages our members on matters related to politics or legislative proposals.  However, we do feel strongly regarding this urgent matter being considered by Congress.  Baylands Family Credit Union does NOT support this proposed legislation, and we have actively engaged with our elected officials who represent the communities we serve in order to share that sentiment and ask that they join their voices in opposition to this proposal.

WHAT WE NEED FROM YOU

We value civic engagement and believe it's our duty to inform you when legislation is being discussed that could directly impact you.

Please consider lending your voice to this important effort.

The National Association of Federally-Insured Credit Unions (NAFCU) has created an easy way for Baylands members to join our voices.  Simply click here (NAFCU Grassroots Action Center: https://www.nafcu.org/grassroots) to input your name and address information and send a personal message to your Virginia Senators and House of Representatives member.  If you are in agreement, we strongly encourage you to send the message and let them know how you feel about this proposal.

We are stronger when we stand together.  Please join us and have your voice heard.

Thank you for being an important part of Baylands Family Credit Union.

Sincerely,

Teresa Millis, President/CEO