Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Compliance T or Frefunded ATM fees are interest
WASHINGTON (3/11/08)—If a credit union decides to refund foreign ATM fees to its members, does it have to treat the refund as interest and file a Internal Revenue Service (IRS) Form 1099 INT? The Credit Union National Association compliance team advises that any credit union considering such a refund program should look closely at the issue. “According to the IRS Information Return Hotline, the IRS has not issued anything on this particular issue and would prefer to determine if filing is appropriate on a case by case basis,” according to CUNA’s Compliance Challenge. The IRS requires the filing of a 1099 INT for any interest payments made to a consumer in relation to a deposit account, whether or not it is designated as interest, when it provides an incentive for the consumer to open or maintain a deposit account with a particular institution. “Interest” has been found to mean actual interest accrued on an account and monetary gifts or merchandise provided to consumers in connection with opening or maintaining an account with a particular institution. “So, it could be argued that ATM fee refunds offered as an incentive to keep existing members or solicit new members could be considered interest,” the Challenge says. For those considering a refund program, or other initiatives that bring up tax concerns, here’s the IRS Information Return Reporting Hotline: 1-866-455-7438.


RSS





print
News Now LiveWire
.@LACULeague in @DailyComet: #creditunions' "old" benefits attractive to new generation http://t.co/AzOv3nB7IB
1 hour ago
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
6 hours ago
.@daytondailynews : The secret is out about #creditunions http://t.co/Aqu3pFTROV @DayAirCU @CODECreditUnion
6 hours ago
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
8 hours ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
8 hours ago