WASHINGTON — Predictably Edward Yingling, CEO of the ABA, decried First Community Credit Union's litigation against the IRS and argued instead that the CU and all state chartered CUs should pay taxes on income the IRS has deemed unrelated to their core missions.
"Traditional credit unions earn their tax-exempt status by meeting the purposes set forth in their charter–to serve the needs of low-to-moderate income people by promoting thrift and providing low-cost credit to members," Yingling said in a prepared statement. "When credit unions offer products to non-members or offer services that are beyond their chartered purpose, they shouldn't be given a tax break on those services."
"Rather than trying to skirt the law, non-traditional credit unions should consider changing their charter and become good corporate citizens."
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