CUNA wrote to Senate Finance Committee Chairman Orrin Hatch (R-Utah) Tuesday in response to Hatch’s letter sent to the Internal Revenue Service (IRS) asking it to consider whether the “largest federal credit unions” should be required to file annual IRS Form 990s. Federal credit unions are not required by the IRS to file Form 990s.
“The asset size of a credit union and the products and services offered should not be factors in regulating one credit union more than another,” the letter reads. “Some of the largest credit unions in the world serve primarily veterans, members of the U.S. military, and their families. Credit union products and services have evolved over time as the nature of the financial marketplace has evolved.”
The letter additionally notes that federal credit unions are regulated and examined by federal agencies, including NCUA and the Consumer Financial Protection Bureau (CFPB) for credit unions with assets of more than $10 billion.
“There is no question that credit unions are complying with their tax-exempt purpose, as determined by the Congress in the Federal Credit Union Act. This makes such additional disclosure unnecessary,” the letter reads. “All federally insured credit unions file extensive quarterly call reports that are publicly available on the NCUA’s website.”
Hatch wrote to NCUA earlier this year asking whether credit unions are evolving beyond their original purpose. CUNA President/CEO Jim Nussle responded with a detailed letter outlining how credit unions continue to fulfill their mission as the financial services landscape evolves.
CUNA followed up with a joint letter detailing credit unions’ mission and structure, the reasons for the credit union tax status. The NCUA responded to Hatch, and Nussle issued a statement on NCUA’s response Monday.