Congressional Tax-Writers Eye CUs

From CU Journal

WASHINGTON (10/25/05) -- As has recently been rumored, congressional tax-writers set their sights on credit unions Monday, scheduling an oversight hearing on the credit union tax exemption for Nov. 3. The hearing before the House Ways and Means Committee is expected to be conducted as were similar oversight hearings held by the panel earlier this year on the tax-exemption for not-for-profit hospitals and other 501 (c) 3 organization, so-called because they derive their tax exemption, like credit unions, from section 501 (c) 3 of the Internal Revenue Code. The Ways and Means Committee has not made a witness list public yet but sources indicate that likely witnesses are representatives from the General Accounting Office, which has conducted numerous studies on credit unions and their tax exemption in the past; the Internal Revenue Service, which has held discussions with Ways and Means representatives recently; and NCUA. The trade associations are not expected to testify. Still, the trade associations expect to be heard. "At a minimum, we'll submit a statement for the record," one lobbyist told The Credit Union Journal.