Posted by Anthony Demangone
There has been a bit of confusion over whether federal credit unions must file an IRS Form 990. To clear things up, they do not. But don't take my word. Back in 1988, NCUA issued Letter to Credit Unions 100 to explain why credit unions are exempt from the requirement.
The Internal Revenue Service has now informed us that, according to their regulations, organizations that are tax exempt under Section 501(c)(1) of the IRC do not have to file an informational return or make such return available for inspection. (See Section 1.6033-2(g) (vi) of the Income Tax regulations, 26 C.F.R. 1.6033-2(g)(1)(vi).) Since FCU’s are tax exempt under Section 501 (c) (1) of the IRC, FCU’s are not required to file or maintain an informational tax return. Accordingly, NCUA will no longer file a consolidated Form 990.
File this one away, as it is a nice way to show why we don' t need to file the IRS 990 when that question pops up.
Have a great weekend everyone. I'm currently in San Antonio at NAFCU's Volunteer's Conference. Mandy will join me later today. I see a stroll down River Walk in our future. (As well as Missions' game.)
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