X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON — The IRS has publicly released rulings recently in Technical Advice Memoranda stating that credit card interchange fees are not subject to unrelated business income tax.

The IRS released 12 Technical Advice Memoranda June 22, which reiterated some of the IRS’ stands on credit union activities subject to UBIT, but also cleared credit card program interchange fees from coverage. “Making interest-bearing loans to members is a traditional activity of exempt credit unions,” one of the TAMs read. “Credit unions originally made unsecured personal loans to members. Because of changes in the financial marketplace and the expanded needs of financial institutions customers, today all the types of loans made by [the unnamed credit union]–including personal loans to members; first mortgage loans and second-mortgage or home equity loans, secured by residential real estate owned by the members; small business loans; auto loans, secured by the automobile owned by the member whose purchase is financed by the loan; and credit card loans–are recognized as substantially related to the exempt purposes and functions of [the credit union].”

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.