WASHINGTON (3/4/08)—The Credit Union National Association (CUNA) is offering a free webinar today on issues surrounding unrelated business income tax (UBIT) for credit unions. The webinar will spotlight the latest information on a federal court challenge to the Internal Revenue Service’s (IRS) determinations that certain insurance products offered to members fall outside the credit union's main mission and are subject to UBIT. It is being broadcast as part of the breakout sessions offered during CUNA’s Governmental Affairs Conference here this week In January, Community First CU, Appleton, Wis., filed a court challenge against the IRS regarding its determination on insurance products. The credit union said at issue is about $54,000 in taxes it paid in 2006 on income from the sale of credit life and credit disability insurance, and guaranteed auto protection (GAP) insurance. While it is unlikely any outside parties will be allowed to join the suit, the credit union’s action is backed by CUNA, American Association of Credit Union Leagues, National Association of State Credit Union Supervisors NASCUS), and CUNA Mutual Group, which comprise the credit union movement’s UBIT Steering Committee. “The IRS position is untenable,” Eric Richard, CUNA’s executive vice president/general counsel has said. “They say credit unions should pay taxes even on some financial services products offered to their own members on a cooperative, not-for-profit basis. That’s just wrong. And we think the court will agree with us.” Scheduled panelists for the UBIT webinar include:
* Mary Martha Fortney, president/CEO, NASCUS; * Faye Patzner, chief legal officer, CUNA Mutual Group * CUNA’s Eric Richard, and * Brett Thompson, president, Wisconsin CU League.
Use the resource link below for more information about the free 2 p.m. ET webinar.