WASHINGTON -- Compensation figures of key credit union executives could be inflated if a proposed change in federal reporting requirements goes through, CUNA told the Internal Revenue Service today.
CUNA expressed concern that the proposal to report nontaxable expense reimbursements and reimbursements would cause credit unions to report figures that "do not reflect what most individuals consider to be compensation.''
The association, in a letter from Senior Vice President sand Deputy General Counsel Mary Mitchell Dunn, also urged the IRS to set $150,000 as the minimum salary level of "key employees'' that would have to be reported. The current minimum is $50,000 and the IRS is proposing a change to $100,000.
CUNA also said that changes to the IRS' definition of "key employees'' is overly broad and cause credit unions to have to report data on department heads and middle managers "who do not have the kind of authority that would justify reporting their compensation.''
The IRS issued draft instructions on filling out the revised version of Form 1099, which all tax-exempt organizations must file annually in lieu of an income tax return. The regulations were first issued last year and comments on the draft instructions are due by Sunday.
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