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990 filers CUNA reminds dont lose exemption
WASHINGTON (9/14/10)--The Credit Union National Association (CUNA) wants to remind state-chartered credit unions of the importance of making very sure that they are filing annually with the Internal Revenue Service (IRS) their Form 990, “Return of Organization Exempt for Income Tax." Tax-exempt organizations that haven’t filed their 990 form for three consecutive years are in danger of losing their federal tax exemption under a provision included in the Pension Protection Act of 2006. State-chartered credit unions are required to file the 990 form annually. The deadline for filing to make sure there isn’t any revocation of income tax-exemption is Oct. 15. Federal credit unions are not required to file the form. The IRS is worried that 300,000 small charities may be caught by this new law, and has a new "toolkit" on its website that includes a list of organizations that have failed to file their forms for the last three years. The toolkit includes answers to frequently asked questions about revocation and reinstatement. “Although the IRS is focusing on small charitable organizations that may have overlooked their reporting responsibilities, CUNA is concerned that there may be a handful of credit unions that didn’t realize that their own state regulator discontinued filing a group 990 form in recent years and failed to start filing the annual tax return themselves,” said Kathy Thompson, CUNA’s senior vice president for compliance. “There are a few states still filing a group 990, so if you have any question about this, you should contact your league or state regulator.” Thompson said that the IRS list includes names of some credit unions that she recognizes have merged in recent years and has “some strange listings” that include “credit union” in the name. She reports that a number of leagues have gone through the IRS list and contacted a few credit unions in their states to make sure there hasn’t been an oversight in filing. “But ultimately the responsibility rests with the state-chartered credit union to protect its federal tax exemption by making sure there hasn’t been any gap in 990 filings,” stressed Thompson. User the link below for the IRS toolkit explaining the 990 filing requirement and the special relief that the IRS is offering to small organizations this fall. The toolkit includes a section of what the credit union should do if it thinks the IRS records are wrong.
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