Removing Barriers Blog

CU tax status left alone in Senate report
Posted July 08, 2015 by CUNA Advocacy

Today the United States Senate’s Finance Committee released a business income tax reform report.  Among the recommendations for reforms, no mention was made of altering credit unions’ tax status in any way.  This is a huge victory for credit unions as the banker lobby had written and heavily lobbied Senators on the Committee to strip credit unions of their unique tax status in the report.  Senators found their arguments unpersuasive.  CUNA also heavily lobbied all of the Senators on the Committee.  Clearly, Senators and their staff were convinced that credit unions remain true to their historical mission on serving the underserved and promoting thrift.  Senators also recognized that credit unions are different from banks in their structure as not-for-profit financial cooperatives.  

In related news, the report also does not suggest new UBIT (Unrelated Business Income Tax) changes for credit unions.  However, the report does recommend that all tax-exempt organizations be required to file their I.R.S. Form 990s electronically.  

Protecting the credit union tax status remains CUNA’s top advocacy priority.  CUNA, as well as state leagues and credit unions, have been successful in countering an increasing number of inaccurate bank ads that attack the credit union tax status.

For more information contact John Hildreth.