Could CUs be Facing a Major Overhaul of Non-Profit Tax Law and Regulation? WASHINGTON-In a recent letter to Senate Finance Committee Chairman Charles Grassley (R-Iowa), Internal Revenue Service Commissioner Mark Everson laid out various abuses of the tax law by exempt entities. Though he did not mention credit unions, Everson's comment that only limited review of the regulations has been done since the 1960s may indicate he is looking to revamp the regs on tax-exempt entities. However, the commissioner's report was not all negative. "This focus should not overshadow the inspiring work that the tax-exempt community does day-in and day-out, nor should it detract from the fact that the overwhelming majority of tax-exempt entities do their utmost to comply fully with the letter and the spirit of the tax law," Everson wrote. "However, we must recognize that we are now at an important juncture. We can see that tax abuse is increasingly present in the sector and we intend to address it. We will act vigorously, for to do otherwise is to risk the loss of the faith and support that the public has always given this sector." "This is an ongoing issue and it is not specific to credit unions," NAFCU Communications Manager Rebecca Somers said. She emphasized that NAFCU is following it closely "and we support tax compliance in every way." CUNA Vice President for Legislative Affairs and Senior Legislative Counsel Gary Kohn commented, "It's not a stretch of the imagination that this is a jumping off point for further and more specific investigations, by [House Ways and Means Committee] Chairman [Bill] Thomas for example."
IRS Commissioner Writes Senate Finance on Abuses by Tax-Exempt Entities; CUs Spared for Now
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