CUNA raised concerns with several taxes contained the Tax Cuts and Jobs Act in a letter to legislators sent Monday. The letter was sent to Sen. Orrin Hatch (R-Utah), Sen. Ron Wyden (D-Ore.), Rep. Kevin Brady (R-Texas) and Rep. Richard Neal (D-Mass.) in response to Monday night’s release of the Retirement, Savings and Other Tax Relief Act of 2018 (H.R. 88).
“America’s credit unions were deeply appreciative that the Tax Cuts and Jobs Act of 2017 (TCJA) retained the credit union exemption from the federal income tax. This reflects Congress’s understanding that the tax status is based on credit unions’ unique structure and mission within the financial services sector,” the letter reads. “While credit unions are exempt from income tax, they are subject to various other taxes and are therefore invested stakeholders in tax legislation under consideration by Congress. Through this lens, we raise additional concerns we hope Congress will address in H.R. 88, the Retirement, Savings, and Other Tax Relief Act.”
H.R. 88 contains two CUNA-supported extensions of tax provisions that have expired, known as “tax extenders.” One eliminates the requirement for most financial institutions to file an IRS Form 1099-C on a mortgage default involving an individual's primary residence.
The second provision would make insurance premiums paid in 2017 retroactively deductible as homeowners filed their 2017 tax returns. Both provisions expired at the end of 2017.
The letter urges the legislators to make several changes to H.R. 88: