I, along with the entire Spero staff, take your privacy and financial wellbeing seriously. That’s why I feel it important to make you aware of potential legislation that may impact your financial information.
A proposal is currently being reviewed by Congress that would require financial institutions (both banks and credit unions) to annually report detailed information on account inflows and outflows with balances of $600 or more to the IRS. Today, we report to the IRS information only related to actual taxable events for members, such as interest earned or mortgage interest paid.
If this proposal is passed, we, along with every other financial institution, would be required to provide the IRS with a tremendous amount of member data that raises several concerns:
- Intrusion of Member Privacy: The proposal would violate the personal privacy of consumers by forcing financial institutions to provide the government with information that does not reflect taxable activity.
- Undue Burden on Small Business and Financial Institutions: The new reporting requirements would create unnecessary burdens on financial institutions and raise tax preparation costs for small businesses.
- Unnecessary Risk to Member Financial Information: Personal information would be passed to the IRS, where old systems have already been compromised in recent years, and the addition of this type of data would only increase the likelihood of a future breach.
To help prevent this proposal from being enacted, I encourage you to research this subject matter and make your voice heard by contacting our Congressional representatives using the information below. Click here for a pre-drafted message to the South Carolina delegation.
Thank you for your continued trust and support of Spero Financial! It is an honor to serve you!
I appreciate you,
President and CEO