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
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
10 hours ago
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
12 hours ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
13 hours ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
13 hours ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
13 hours ago