During the time covered by this Application a new issue arose, concerning a demand by the Internal Revenue Service made in November 2017, for the payment of $477,864.91 in connection with the United Western Bancorp, Inc., 2016 tax return, Form 1120. The Trustee has
consistently taken the position that income generated by the FDIC receivership for United Western Bank, a UWBI subsidiary, is exempt from income taxation. The Firm is representing the Trustee in efforts to resolve this issue administratively but has also investigated and prepared for alternatives for resolution by litigation.
