PRESS RELEASE
January 26, 2007
DALLAS, TEXAS — Representatives from state agencies, state credit unions and credit union leagues gathered in Dallas, Texas on January 25 for a comprehensive one-day NASCUS workshop on unrelated business income tax (UBIT).
In the first or second quarter of 2007, the Internal Revenue Service (IRS) is expected to release Technical Advice Memoranda (TAMs) on UBIT explaining IRS’ interpretation as to whether some state-chartered credit union activities are substantially related to the credit union’s tax exempt purposes. The workshop was designed as a hands-on event to help participants understand the expected IRS determinations and identify activities that might bear closer scrutiny.
“The timing of NASCUS’ UBIT Workshop couldn’t have been better,” said NASCUS President and CEO Mary Martha Fortney. “With the IRS expected to release the TAMs soon, our attendees were provided with essential updates and information on this emerging issue.”
The workshop featured updates from the UBIT Steering Committee, of which NASCUS is a member along with the Credit Union National Association (CUNA), CUNA Mutual Group and the American Association of Credit Union Leagues.
In addition, the workshop faculty reviewed the IRS Form 990 and Form 990-T and presented an in-depth overview of UBIT from a historical and legal perspective. Presenters also demonstrated accepted accounting principles and strategies to calculate UBIT liability and provided guidance on using an accounting tool developed by CUNA.
The faculty for the workshop included: Larry Blanchard, CUNA Mutual Group’s Senior Vice President for Corporate and Legislative Affairs; Faye Patzner, CUNA Mutual Group’s Chief Legal Officer; Scott Waite, CFO of Patelco Credit Union, San Francisco, California; John Lederer, president of the Credit Union of Texas, Dallas, Texas; Harold Feeney, commissioner of the Texas Credit Union Department; and NASCUS President and CEO Mary Martha Fortney.
“As UBIT issues develop, NASCUS and the UBIT Steering Committee will continue to provide the credit union system with updates, education and additional workshops on this critical issue,” said Fortney.
The UBIT Steering Committee will hold a national webinar to discuss UBIT on February 7, 2007. For more information on this webinar, click here.
Information
Contact:
Kate Hartig, Director of Communications,
(703) 528-0669 or kate@nascus.org
The
NASCUS mission is to enhance state credit union
supervision and advocate a safe and sound state
credit union system. Founded in 1965, NASCUS
represents all 48 state and territorial credit
union supervisors and the NASCUS Credit Union
Advisory Council, which is made up of nearly
500 of the nation's more than 3,400 state-chartered
credit unions.
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