ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release November 18, 2005 #05-87
E-mail: [email protected]

ACB OFFERS LEGISLATIVE LANGUAGE ON CREDIT UNION TRANSPARENCY, TAX FAIRNESS ISSUES

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WASHINGTON, D.C. — America’s Community Bankers, addressing concerns expressed at the recent hearing of the House Ways and Means Committee on the credit union tax exemption, has provided Chairman Bill Thomas (R-Calif.) with suggested legislative language.

"We believe that diversified credit unions offering the same products and services as community banks should pay taxes," said Diane Casey-Landry, ACB’s president and CEO, in a letter to Thomas. Casey-Landry said the language would "bring more transparency and fairness to the credit union industry, and follows the lines of discussion advanced by members during the hearing." ACB’s proposals would:

Require credit unions to file Internal Revenue Service Form 990, which includes basic information on income and expenses, salaries and benefits paid to executives and other employees and professional fees paid to third-party contractors. This filing insures compliance with the laws governing a tax-exempt organization and provides information to the public.
Subject credit unions to the unrelated business income tax, for activities not related to providing basic banking services. These include selling pet insurance, providing travel agency services, selling automobile warranties and providing ATM services to non members.
Permit credit unions to maintain their tax exemption if they have less than $25 million in assets or have 75 percent of their income derived from providing loans and deposit services to credit union members of modest means.

Click here to read the letter.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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