(June 11, 2021) Congratulations to Virginia’s Robert “Bob” Hughes retired as deputy director of the State Corporation Commission Bureau of Financial Institutions on May 28 after 41 years of service … Retiring NASCUS leader Lucy Ito is profiled in the American Banker (a trade publication) this week, focusing on NASCUS’ efforts to bring transparency and equity to the overhead transfer rate – which the article notes was a singular accomplishment during her nearly seven-year turn at the helm of the association. (To see the full text of the article, see the link below – subscription required) … Requiring financial institutions to report information on account flows for tax reporting purposes “would be a complex undertaking” with significant compliance burdens that may outweigh whatever benefits result, according to a letter sent from financial institution trade groups (including those representing credit unions) to a House subcommittee this week. The letter essentially cautions lawmakers about taking the step, which was proposed last week by President Joe Biden (D) in his 2022 budget. Under the proposal, all deposit, loan and investment accounts at financial institutions (including credit unions) for persons and businesses would be subject to a $600 “de minimus” gross inflow reporting threshold. The provision is designed to increase taxpayer compliance with income reporting … There is just a bit more than two weeks left for low-income designated credit unions to seek Community Development Revolving Loan Fund (CDRLF) grants, including minority depository (MDI) mentoring grants, NCUA said the week. The deadline is June 26 to apply for the approximately $1.5 million in CDRLF grants to the most-qualified applicants, subject to the availability of funds, the agency said. There are three categories of grants: underserved outreach (maximum award of $50,000); MDI mentoring (maximum award of $25,000); and digital services and cybersecurity (maximum award of $7,000).
LINKS:
American Banker — Lucy Ito’s legacy: Lowering a vexing regulatory cost for credit unions (subscription required)
(June 4, 2021) All deposit, loan and investment accounts at financial institutions (including credit unions) for persons and businesses would be subject to a $600 “de minimus” gross inflow reporting threshold, according to the 2022 budget submitted late last week by the Biden Administration.
Under the provision – which is designed to increase taxpayer compliance with income reporting – Treasury would have broad power to issue regulations, which would take effect beginning in the 2023 tax year. The provision was included in the so-called “Green Book,” which outlines the specific tax provisions that the administration seeks to enact along with its budget.
The provision requires that reporting include a breakdown for cash, transactions with a foreign account, and transfers to and from another account with the same owner. Payment settlement entities would also be required to collect Taxpayer Identification Numbers (TINs) and file a revised IRS Form 1099-K expanded to all payee accounts (except de minimis amounts), which would report not only gross receipts but also gross purchases.
The entire budget proposal must be considered – and passed – by Congress before it takes effect. The budget proposal has a long way to go before a final version, as amended by the House and Senate, becomes law.