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Article: Latest UBIT TAM From IRS Adds Shared Branching To List Of Taxable Items.(General News)
- Article from:
- Credit Union Journal
- Article date:
- August 10, 2009
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Byline: Ed Roberts, Washington Bureau Chief
WASHINGTON-In the latest salvo of a two-decade battle with credit unions, the Internal Revenue Service has issued a ruling declaring that revenues from shared branching, among other things, are taxable under the Unrelated Business Income Tax (UBIT).
Some of the products cited in the so-called Technical Advice Memorandum issued by the IRS, specifically credit life and credit life disability insurance, were already struck down by a federal court two weeks after the May issuance of the TAM, so it is unclear what effect this will have on UBIT filings.
But the most troublesome issue raised in the TAM is ...