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Senate Drops Provision on New Interest Reporting
Thursday, June 11, 2015 6:45 AM

The chief tax counsel for Rep. Paul Ryan (R-WI)—who heads the powerful U.S. House Ways and Means Committee—yesterday informed Credit Union National Association that a problematic provision for financial institutions had been stripped from a Senate trade bill before the House was to vote on the trade package. The staffer told CUNA Chief Operations Officer Rich Meade that they had heard from credit unions and they had taken care of the problem.

CUNA President/CEO Jim Nussle said of the significant development for credit unions, "Sometimes the most important victories come from the battles you prevent from even being waged in the first place."

Nussle thanked House leadership for their action. He also praised the state credit union leagues for their strong engagement key members of Congress.

The problem was a provision in a Senate-passed bill that would have required additional Form 1099 reporting on low-interest deposit accounts and other reporting on all deposit accounts. CUNA warned that the requirement would have been "an unnecessary nuisance for nearly every American," in a letter last week to lawmakers.

CUNA also noted grave concerns that such additional reporting would add significant time and money costs for credit unions and other depository institutions, while bringing only confusion to consumers.