WASHINGTON -- Compensation figures of key credit unionexecutives could be inflated if a proposed change in federalreporting requirements goes through, CUNA told the Internal RevenueService today.

CUNA expressed concern that the proposal to report nontaxableexpense reimbursements and reimbursements would cause credit unionsto report figures that "do not reflect what most individualsconsider to be compensation.''

The association, in a letter from Senior Vice President sandDeputy General Counsel Mary Mitchell Dunn, also urged the IRS toset $150,000 as the minimum salary level of "key employees'' thatwould have to be reported. The current minimum is $50,000 and theIRS is proposing a change to $100,000.

CUNA also said that changes to the IRS' definition of "keyemployees'' is overly broad and cause credit unions to have toreport data on department heads and middle managers "who do nothave the kind of authority that would justify reporting theircompensation.''

The IRS issued draft instructions on filling out the revisedversion of Form 1099, which all tax-exempt organizations must fileannually in lieu of an income tax return. The regulations werefirst issued last year and comments on the draft instructions aredue by Sunday.