Administration Proposes Expanded Reporting to IRS

The Treasury Department has released the Biden Administration's Budget (the "Greenbook") for Fiscal Year 2022. Included in a section on improving taxpayer compliance is a proposal to introduce Comprehensive Financial Account Reporting by financial institutions, which would apply to all business and personal accounts at financial institutions, including deposit accounts, loans, and investment accounts, starting in 2023. A $600 de minimis gross inflow threshold would apply to reporting, and Treasury would have broad authority to issue regulations for the proposed requirements.

Also included in this proposed budget is increased funding to several credit union priorities:

• The proposal allocates $330 million for the Treasury’s Community Development Financial Institutions (CDFI) Fund, up from $270 million the previous year.
• The CDFI Fund makes capital grants, equity investments, and awards for technical assistance to CDFIs for community development initiatives such as small businesses, community facilities, and low-income housing.
• NCUA’s Community Development Revolving Loan Fund (CDRLF) is funded at $2 million, up from $1.5 million last year.
• The CDRLF assists credit unions serving low-income communities to provide financial services, stimulate economic activities, and operate more efficiently.
• It also includes $18.5 million for the U.S. Agency for International Development’s Cooperative Development Fund, the same amount as last year.