WASHINGTON -
The set of 12 TAMs follow a previous series issued by IRS that also indicated the taxation agency will not be trying to subject credit unions to UBIT.
CUNA hailed the most recent move by the IRS as an "important victory for credit unions." Though federal charters are subject to UBIT, the status of state charters is still open to debate. The TAMs were directed at individual state-chartered credit unions and do not set precedent for all CUs, Richard explained, but the hope is that it could indicate how the IRS may approach other CUs' products and services in the future.
"This is a very bright spot in the UBIT picture," CUNA General Counsel Eric Richard said. "We pushed very hard to protect interchange fees from UBIT, and this development allows us to focus on other products at stake."
The IRS has already said that several products sold by unidentified state-chartered credit unions would be subject to UBIT, including: credit life and disability insurance, accidental death and dismemberment insurance, MEMBERS financial management services, car warranties, guaranteed auto protection insurance and dental and cancer insurance.
CUNA said it continues to work with UBIT Steering and the credit unions affected by the IRS opinions and will pursue litigation as necessary.
At least nine more TAMs are in the pipeline, Richards added.
more
Read more about this ongoing story at cujournal.com and searching "UBIT" and "TAMs".
For info on this story:
* www.irs.gov
* www.cuna.coop
