State-chartered credit unions with CUSOs are still waiting for more guidance on if income earned through their subsidiaries would be subject to unrelated business income tax.

The latest chapter in the ongoing UBIT saga involves a May 5 IRS technical advice memorandum released in early August that said taxes could be assessed on income earned from certain CUSOs, shared-branching arrangements and the sale of financial management services and certain insurance products.

Regarding CUSOs, the IRS is still not clear on if they would be required to pay UBIT, said CUNA General Counsel Eric Richard. The matter does not involve federal credit unions.

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