WASHINGTON –Bellco Credit Union has sued the U.S. InternalRevenue Service to recover $199,000 in unrelated business incometax payments.

The Greenwood Village, Colorado-based credit union is disputingthe taxes it paid in 2000, 2001 and 2003 based on revenue generatedfrom sales of credit life and credit disability insurance duringthose years. Bellco is also claiming a refund for taxes based onrevenue from the sales of accidental death and disability insuranceand from its involvement in CFS Member Financial Services in2003.

The lawsuit, filed in U.S. District Court in Denver, is thesecond credit union-originated lawsuit on this issue.

“Bellco Credit Union has made a strong case in its complaint,taking a critical stop toward compelling the tax agency to adopt amore reasonable position. Bellco deserves the gratitude of thecredit union system for taking on this important policy issue,essentially seeking to right a wrong that IRS has committed byforcing cooperatively owned, not-for-profit credit unions to paytax on some of the financial services they offer,” CUNA GeneralCounsel and Executive Vice President Eric Richard said.

Community First Credit Union's lawsuit over the IRS'interpretation of the UBIT with regards to credit union isscheduled to be heard next May 9. The case filed by the Appleton,Wisconsin-based credit union is set to be heard in U.S. DistrictCourt in Green Bay.