The straight line

Category Archives: Audit News

Section 199 Update – Amended Returns

So far, there have been several private letter rulings dealing with section 199. These rulings have been issued on pooling cooperatives, although a thorough review of the facts indicates that all of the cooperatives involved have been conducting their business like non-pooling marketing cooperatives and are pooling cooperatives in name only.

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Turn To GT For Your Form 990 Tax Filing

PolicyWorks recently notified credit unions that the 2008 tax year would be their last year of filing a group Form 990. PolicyWorks sighted a number of reasons, one being that “due to increasing complexity, we feel credit unions are better served seeking advice from professionals with tax/accounting expertise”.

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Repeal of the UBIT Tax

For the past few years, state charted credit unions have been taxed on unrelated business taxable income. Taxed items included credit life, credit disability and other insurance products which Credit Unions have been selling to their members. Recently, two cases have challenged the IRS ruling that income from the sale of these products should be subject to UBIT.

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Congress Passes Corporate Bailout Bill

Recently, Congress passed and the president signed into effect, a corporate bailout bill that impacts credit unions. This bill creates a Corporate Credit Union Stabilization Fund, essentially allowing the NCUA to borrow up to $6 billion from the Treasury in order to cover the losses suffered by U.S. Central Federal Credit Union and WesCorp Federal Credit Union.

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New COBRA Provisions in the Stimulus Law

For employers, the time is now to comply with a little-known provision in the new stimulus law, signed by President Obama on February 17th. Part of the American Recovery and Reinvestment Act of 2009 is a revamping of COBRA law for certain employees.

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