Berger updates members on tax issues; NAFCU pushes Hill for fixes

by NAFCU Newsroom

NAFCU President and CEO Dan Berger, in an email Wednesday to members, updated credit unions on the latest tax reform developments, including the recently released House tax extenders and fixes package, H.R. 88, and NAFCU’s ongoing efforts to protect credit union interests.

In his update, Berger noted the association’s work to protect credit union interests following the enactment of the Tax Cuts and Jobs Act (TCJA), including meeting with Capitol Hill leaders and the IRS. NAFCU has also opposed efforts to require all credit unions file a Form 990-T and continues to seek relief for credit unions from the new 21 percent excise tax imposed on certain not-for-profits.

Also yesterday, NAFCU Vice President of Legislative Affairs Brad Thaler wrote the Joint Committee on Taxation (JCT) urging that a technical fix be provided to “grandfather” those employment contracts entered into on or before Nov. 2, 2017, for tax-exempt employers. The TCJA contained a provision allowing for-profits to grandfather in binding contracts in effect before that date, but did not include the same clause for not-for-profit tax-exempt organizations. The bipartisan JCT is generally responsible for identifying potential tax code fixes.

 

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