IRS Issues Additional Insight on Taxpayer Consent Requirement from Taxpayer First Act


The Internal Revenue Service (IRS) issued updated guidance regarding the consent requirement that came out of Section 2202 of the Taxpayer First Act.

In its FAQ section, the IRS has stated:

Section 2202 of the Taxpayer First Act amended the provisions of IRC section 6103(c) by adding the following language: “Persons designated by the taxpayer under this subsection to receive return information shall not use the information for any purpose other than the express purpose for which consent was granted and shall not disclose return information to any other person without the express permission of, or request by, the taxpayer.”

This provision limits the redisclosure and use of return information in the case of taxpayers who have consented to the disclosure of their return information by the Internal Revenue Service to a third party under IRC section 6103(c). Section 2202 of the Taxpayer First Act applies only to disclosures made by the Internal Revenue Service after December 28, 2019, and any subsequent redisclosures and uses of such information disclosed by the Internal Revenue Service after December 28, 2019.

Question of the Week

Q.We have a member who is both hearing and sight impaired. They are telling us that under the ADA laws, financial institutions are required to have TTY lines. Is this correct?

Yes and no.

A. The ADA requirements for auxiliary aids and services require credit unions as a public accommodation to take necessary steps to ensure that no member with a disability is excluded, denied services, segregated, or otherwise treated differently than other individuals because of the absence of auxiliary aids.

A TTY is an example of an auxiliary aid.

The regulations further state that when a public accommodation uses an automated-attendant system, including, but not limited to, voicemail and messaging, or an interactive voice response system for receiving and directing incoming telephone calls, that system must provide effective real-time communication with individuals using auxiliary aids and services, including text telephones (TTYs) and all forms of FCC-approved telecommunications relay systems, including Internet-based relay systems.

This is the “yes.”

As for the “no”: This part does not require a public accommodation to use a TTY for receiving or making telephone calls incident to its operations. §36.303(d).

Legal Briefs

National Credit Union Administration (NCUA)

3Q 2019 State Credit Union Data Report Now Available

The NCUA released the third quarter 2019 state credit union data report. The report shows federally insured credit unions generally saw continued positive trends in the third quarter of 2019.

Letter to Credit Unions 19-CU-04

The NCUA issued Letter to Credit Unions 19-CU-04 to inform credit unions of the Interagency Guidance on the use of alternative data in credit underwriting.

NCUA Update 19-16

The NCUA issued update 19-16 which covers the Oct. 30, 2019, Regulation Z exemption threshold increase by the CFPB.

NCUA Update 19-17

The NCUA issued update 19-17 which covers the Nov. 29, 2019, HOEPA threshold correct by the CFPB.

Consumer Financial Protection Bureau (CFPB)

Guidance on Construction Loan TRID Disclosures

The CFPB published two guides, one on disclosing construction and construction-permanent loans with a separate Loan Estimate and Closing Disclosure for each phase of the transaction and one on disclosing one combined Loan Estimate and one combined Closing Disclosure for both phases of a construction-permanent transaction.

Annual Report on TILA, EFTA, and Card Act

The CFPB released the annual report on TILA, EFTA, and the Card Act. The report describes the CFPB and other agencies’ enforcement efforts and provides an assessment of the extent of compliance with these consumer protection laws and implementing regulations.

Asset Size Adjustment for HMPL Required Escrow

The CFPB released the annual asset size adjustment to the exemption to the escrow requirement in the Higher Priced Mortgage Loan rule (12 CFR 1026.35). The annual change increases the asset threshold below which a creditor is not required to maintain escrow accounts to $2.202 billion in assets.

Internal Revenue Service (IRS)

Final Regulation Addressing Foreign IDs on Form W-8BEN

The final regulation replaces the previous temporary regulation, which has expired, and incorporates more of the temporary rules and guidance regarding obtaining the account holder’s foreign TIN in writing as well as their date of birth.

Standard Mileage Rate for 2020

The IRS released the 2020 optional standard mileage rate for 2020, which is 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of Jan. 3, 2020. The last update prior to this was Dec. 20, 2019. ­­­­­­­­­­­­­­

Questions? Contact the Compliance Hotline: 1.800.546.4465;

Posted in Compliance News, Compliance News.