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CUNA, League engagement ensure all credit union succes in UBIT case

Statement by CUNA President and CEO Bill Cheney on developments in ‘unrelated business income tax’ (UBIT) by IRS

NOTE: Today it has been announced that the Internal Revenue Service (IRS), finally bowing to the results of two federal court cases brought by credit unions, has issued a memorandum that clears nearly all credit union products at stake in the litigation from being subject to unrelated business income tax (UBIT). The IRS action opens the door for credit unions to receive refunds of past payments. CUNA’s Bill Cheney issued the following statement:

CUNA is proud to have taken a leadership position, in partnership with the Leagues, in bringing about this result for credit unions. As ours is the only national trade group that represents both state and federally chartered credit unions, we were uniquely positioned to pool the resources of the movement. Even though UBIT applies only to state-chartered credit unions, CUNA and League engagement ensured that credit unions of all charter types helped to bring about this success. Further, this latest development is highly significant, particularly as it signals that refund requests for past tax payments by credit unions may now be processed, and – most importantly — credit unions may be able to offer products and services to their members in the future with a significantly diminished threat of having to pay this tax. My thanks to Community First and Bellco Credit Unions for taking action in court, and to the members of the UBIT Steering Committee for their unflagging efforts in this project.

 

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