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May 14, 2008 - The lawsuit filed by Community First Credit Union (Appleton, WI) over unrelated business income tax (UBIT) was given a trial date of May 11, 2009 by Federal Judge William Griesbach.
In the suit, Community First is requesting that the Internal Revenue Service refund more than $54,000 to the credit union in taxes paid on income from the sale of credit life and credit disability insurance and guaranteed auto protection (GAP). Community First asserts that these products are related to the mission and purpose of the credit union and therefore should not be subject to UBIT.
NASCUS, as a member of the UBIT Steering Committee, supports Community First’s litigation efforts and continues to disagree with IRS’ application of UBIT on state-chartered credit unions. The lawsuit, the first of its kind, was filed January 15, 2008. The UBIT Steering Committee expects additional lawsuits to be filed.
Judge Griesbach also set the schedule for the conduct of discovery, to be complete by early December 2008. The trial date and conduct of discovery schedule could change at any time.
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