A secret meeting about tax reform between House Ways and MeansCommittee Chairman Dave Camp (R-Mich.), Senate Finance Committee Chairman Max Baucus (D-Mont.) andTreasury Secretary Jack Lew that took place Tuesday afternoon inthe Capitol was exposed after word spread about the gathering andreporters showed up.

Baucus told Washington publication Politico the threemade progress and tax reform is moving forward. He added that heplans to mark up a tax reform bill this fall.

Camp told reporters he does not plan to release a draft of hisbill before the August break, and the Ways and Means Committee –where tax reform must originate – is still working on theissue.

The involvement of the Executive Branch may not be good news forcredit unions, because President Barack Obama's 2014 budgetestimated the industry tax exemption cost the Treasury $1.44billion in 2012. That same document did not mention the cost of thebank Subchapter S tax-free status.

“The tax reform process feels very fluid right now,” said creditunion lobbyist John McKechnie, partner at the Washington-based firmTotal Spectrum. McKechnie said he's heard that senators aren't keenon Baucus' “blank slate” approach, in which he asked senators to providehim with letters by Friday telling him which tax expendituresshould survive reform.

“But in a way that gives Chairman Baucus more running room. Hecan fill in the details,” McKechnie said.

NAFCU Vice President of Legislative Affairs Brad Thaler said histrade's Congressional Caucus, which will bring hundreds of creditunion executives to Washington to lobby lawmakers in mid-September,is well timed given Baucus' statement the Senate Finance Committeewill consider tax reform legislation this fall.

“NAFCU is remaining vigilant in our defense of the credit uniontax exemption and is staying in regular contact with key members onthe tax writing committees as the tax reform debate moves forward,”he said.