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NASCUS President and CEO Mary Martha Fortney was on the agenda of the Tennessee Credit Union League’s Leg/Reg Forum, February 4-5, presenting “need-to-know” information on unrelated business income tax (UBIT).
NASCUS, as a member of the UBIT Steering Committee, has been active in providing education and information on UBIT as it continues to be a hot topic for credit unions. Fortney covered products and services addressed in recent Internal Revenue Service Technical Advice Memoranda (TAMs) regarding UBT. She also briefed forum attendees on the recent suit filed by Wisconsin state-chartered credit union Community First Credit Union against the IRS for a refund of UBIT taxes paid from insurance products.
Fortney reviewed “Frequently Asked Questions” about recent developments with UBIT, addressing lawsuit timelines, filing requirements and application of UBIT. She emphasized that credit unions should consult with their tax experts, auditors and counsel about filing requirements, as it is unique to every credit union. When asked about the future of UBIT, Fortney replied, “The UBIT Steering Committee will continue to challenge the IRS on its application of UBIT. The IRS must understand the purpose of a credit union and treat UBIT accordingly.”
Also addressing the Leg/Reg Forum were Tennessee Commissioner of Financial Institutions Greg Gonzales, NCUA Chairman JoAnn Johnson, NCUA Region Three Director Alonzo Swann, CUNA Executive Vice President and Legal Counsel Eric Richard, Congressman Lincoln Davis and State Senator Mark Norris.
For more resources on UBIT, click here.
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