The founder of Community First Credit Union and its current president yesterday explained to jurors why the government shouldn't impose the unrelated business income tax on that credit union.

Community First's Founder Maurice Dresang and President/CEO Catherine Tierney testified in a Green Bay, Wis. courtroom following opening arguments by attorneys for the Appleton, Wis.-based credit union and for the government.

Community First Credit Union is seeking a refund of $54,000 that the IRS claimed was owed based on the sale of credit life and credit disability insurance and guaranteed auto protection insurance. The Community First contends that the IRS should not have levied UBIT on these services, because they are financial services that help mitigate the losses to the credit union, enable the credit union to grant loans and thus further the mission of credit unions.