IRS Suspends UBIT Audits

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CUNA said last week that it had been informed the Internal Revenue Service (IRS) has temporarily suspended audits of credit unions in three states over unrelated business income tax (UBIT).

The IRS said it was seeking more guidance before proceeding. According to CUNA, those suspensions have occurred in Alabama, Colorado, and Connecticut. CUNA had announced earlier that it was partnering with CUNA Mutual, state leagues and the National Association of State CU Supervisors (NASCUS) to fight efforts to apply UBIT to credit unions.

As reported in The Credit Union Journal Aug. 11, state league presidents are seeking to raise $1 million to fight such plans, and will raise additional funds if necessary.

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