Looking back eight years ago finds some Texas credit unions getting a surprise visit from the Internal Revenue Service. The IRS plans to audit some 30 state-chartered credit unions for Unrelated Business Income Tax. "We're trying not to react like this is some horrible thing that the IRS is doing until we know whether or not it is," said Texas Credit Union League Senior Vice President/Deputy General Counsel John Lederer. "If it were nationwide and not just Texas, it might be more cause for concern. While TCUL says audits are not a cause to panic, one president of a credit union scheduled to be audited feels the IRS' plans are "extremely important for credit unions nationwide. They want all the policies, procedures, minutes from board meetings, etc. This will be very expensive for the credit union." Also in that issue NCUA agreed to revise its proposed corporate credit union investment regulation 704. NCUA Chairman Norman D'Amours attributed the agency's change of heart to "considerable dialogue with corporate credit unions and the entire corporate credit union community." "Our final rule will be a better product thanks to the thoughtful analysis from many in the credit union community," said D'Amours.

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