The IRS erroneously levied the unrelated business income tax on three financial products sold by the Community First Credit Union, a federal jury in Green Bay, Wis. ruled yesterday.
An eight-member jury ruled that the government must refund the Appleton, Wis.-based credit union $54,604 that it paid for UBIT on sales of financial products.
Community First had maintained that its sale of credit life insurance, credit disability insurance and Guaranteed Auto Protection insurance were substantially related to its tax-exempt mission. The government had maintained that those sales were taxable. The UBIT is only levied on state-chartered credit unions.
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