CUNA engaged w/ UBIT, cannabis, beneficial owner hearings
Both the House and Senate are in session this week and will be conducting several hearings of note to credit unions. On Wednesday the House Ways and Means subcommittee on oversight will conduct a hearing on Unrelated Business Income Tax (UBIT) changes as a result of the Tax Cuts and Jobs Act (TCJA).
The TCJA requires tax-exempt organizations currently subject to UBIT (which includes state-chartered credit unions) to pay a 21% tax on certain employee fringe benefits, such as transportation and parking benefits.
CUNA has called for a repeal of the UBIT provision within the TCJA, or at least a delay in implementation until the Internal Revenue Service issues clear instructions on how to comply, as CAN believes the definition and current IRS guidance are severely lacking in substance and clarity.
continue reading »