WASHINGTON (9/12/14)--The UBIT Steering Committee, comprised of the Credit Union National Association, CUNA Mutual Group, the American Association of Credit Union Leagues and the National Association of State Credit Union Supervisors (NASCUS), was recognized Thursday for its long and diligent work that successfully persuaded the Internal Revenue Service to issue examiner guidance on unrelated business income tax (UBIT).
After almost 20 years of advocacy by the UBIT committee, credit unions in April received a much-sought-after interpretation by the IRS that cleared nearly all credit union products from being subject to UBIT.
The prestigious Pierre Jay Award was awarded by NASCUS at its 2014 State System Summit in Nashville, Tenn.
NASCUS noted that a turning point in the steering committee's work came in 2009, when Community First CU, Appleton, Wis., prevailed in a jury trial against the IRS on UBIT issues, and when a federal court in Colorado ruled in favor of Bellco CU, Greenwood Village, Colo., in its UBIT challenge. The steering committee had worked closely with both credit unions in support of the litigation.
Receiving the award on behalf of CUNA were Kathy Thompson, CUNA's senior vice president of compliance and legislative analysis; Larry Blanchard, CUNA Mutual Group legislative consultant, on behalf of CUNA Mutual Group; Fred Robinson, Tennessee Credit Union League president/CEO, on behalf of AACUL; and Mary Martha Fortney, NASCUS president/CEO, on behalf of NASCUS.
NASCUS first presented the Pierre Jay Award in 1997. It's named after Massachusetts' first commissioner of banks, who is considered instrumental in shaping credit union history.