HERSHEY, Pa. — Speaking at the Pennsylvania Credit Union Association's 73rd Annual Meeting, NASCUS President Mary Martha Fortney said that a plaintiff credit union to sue the IRS over its rulings on Unrelated Business Income Tax has been identified.
Fortney said for now the UBIT Steering Committee, made up of NASCUS, CUNA, CUNA Mutual Group, and the American Association of Credit Union Leagues, is choosing to keep the identity of the CU confidential. It is also not revealing what state the CU is from, which will be key for the lawsuit.
Fortney noted that the committee was hoping to get multiple plaintiffs, but so far just one has stepped forward. That CU has filed its UBIT return, and will then ask for a refund, knowing the IRS won't grant it. After that, it can bring suit. Fortney estimated the suit will be filed in November.
Fortney also alluded to bankers' influence in the IRS' focus on UBIT with credit unions. A number of industry sources say the role bankers have played will soon come to light.
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