Congressional Tax-Writers EyeCUs

WASHINGTON - (10/25/05) -- As has recently been rumored,congressional tax-writers set their sights on credit unions Monday,scheduling an oversight hearing on the credit union tax exemptionfor Nov. 3. The hearing before the House Ways and Means Committeeis expected to be conducted as were similar oversight hearings heldby the panel earlier this year on the tax-exemption fornot-for-profit hospitals and other 501 (c) 3 organization,so-called because they derive their tax exemption, like creditunions, from section 501 (c) 3 of the Internal Revenue Code. TheWays and Means Committee has not made a witness list public yet butsources indicate that likely witnesses are representatives from theGeneral Accounting Office, which has conducted numerous studies oncredit unions and their tax exemption in the past; the InternalRevenue Service, which has held discussions with Ways and Meansrepresentatives recently; and NCUA. The trade associations are notexpected to testify. Still, the trade associations expect to beheard. "At a minimum, we'll submit a statement for the record," onelobbyist told The Credit Union Journal.