Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Changes to Form 990 rule could cut reg burden CUNA
WASHINGTON (8/2/11)--The Credit Union National Association (CUNA) has urged the Internal Revenue Service to consider a number of options for reducing credit unions’ compliance burden under IRS Form 990. State-chartered credit unions are required to file Form 990 with the IRS annually, although a few states still permit group 990 filings. Federal credit unions are not required to file, since they are not subject to unrelated business income taxes. The IRS requires Form 990 filers to disclose the names and compensation of certain key employees such as directors, their 20 highest compensated non-executive employees, any independent contractors that work for the firm, and former high ranking or key employees. However, the reporting thresholds for these positions differ somewhat from position to position. In a comment letter, CUNA suggested that the IRS increase the Form 990 reporting threshold for former directors that received over $10,000 in compensation for their services to $100,000. The $10,000 reporting threshold “is much too low,” and complying with this threshold can strain the often limited resources of smaller credit unions and create a recordkeeping burden for those institutions, CUNA added. The IRS could also consider lowering the number of high-earning, non-director employees that would be covered under Form 990 reporting from 20 to five. Reports detailing the compensation of these and other “key” former employees should also be limited to data from the last two years, rather than the previous five years, CUNA added. CUNA also asked the IRS to consider developing separate Form 990s, one for 501(c)(3) tax-exempt organizations and one for all other tax-exempt organizations under 501(c) of the Internal Revenue Code. For the full comment letter, use the resource link.


RSS print
News Now LiveWire
Why is a #creditunion a good fit for you? http://t.co/i4pGT98mkT via @MONEY
9 hours ago
The numbers are in: Home Depot data breach impact on #creditunions = $57.4 million, 7.2 million credit/debit cards http://t.co/jorYSOYuxj
10 hours ago
.@Nussle : We'll back off when retailers accept their breach responsibility #NewsNow http://t.co/7WxDXicb6j
12 hours ago
RT @asmarterchoice: RT @daily_finance: Top 5 money management tips for 30-somethings http://t.co/mWRfDRSTE7
12 hours ago
Operational efficiencies focus of new @CUNA program #NewsNow http://t.co/qBYHKVYeQN
13 hours ago