What Should State-Chartered Credit Unions and Other Mutual Financial Organizations Know About Tax Exemption and
Form 990 Filing?
- Updated Aug 14, 2023 - 2.00 PM - Admin, Tax990
The IRS has established various IRC sections to grant tax exemption for organizations that are involved in activities that further any sort of exempt purposes, provided that they meet all the requirements.
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How Does the IRS Define State-Chartered Credit Unions and Other Mutual Financial Organizations?
Per the IRC section 501(c)(14), State-Chartered Credit Unions and Other Mutual Financial Organizations are:
State Chartered Credit Unions (without capital stock) - established under a state credit union law and are operated for mutual purposes.
Other Mutual Financial Organizations - Corporations or associations without capital stock organized before September 1, 1957, that provide reserve funds for and insurance of, shares or deposits in:
- Domestic building and loan associations
- Cooperative banks (without capital stock) that are operated without profit
- Mutual savings banks (not having capital stock represented by shares)
- Section 591(b) Mutual Savings banks
How Can These Organizations Apply for Tax Exemption?
The State-Chartered Credit Unions and Other Mutual Financial Organizations that seek tax-exempt status under section 501(c)(14) are required to file Form 1024 – Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code.
These organizations should make sure to include the following information in their application along with the other required details:
Confirmation of the organization’s formation under the state credit union law
(applicable for State-Chartered Credit Unions)
The state and the date of incorporation
Character, purpose, activities, and the sources of receipts of the organization
Whether the organization’s income benefits any private shareholder
Whether the law regarding loans, investments, and dividends is being complied with
Detailed information that shows either the organization provides both reserve funds for and insurance of shares and deposits of members (or) provides reserve funds for shares or deposits, and 85% or more of the income is generated through providing reserve funds and from investments
What are the 990 filing Requirements?
State-Chartered Credit Unions and Other Mutual Financial Organizations that obtained 501(c)(14) tax-exempt status must file 990 Series Forms annually to report the details required by the IRS
(such as revenue, expenses, activities, etc).
State-Chartered Credit Unions and Other Mutual Financial Organizations should file Form 990-N if they have gross receipts value of $50,000 or less.
State-Chartered Credit Unions and Other Mutual Financial Organizations should file Form 990-EZ if they have gross receipts less than $200,000 and assets less than $500,000
State-Chartered Credit Unions and Other Mutual Financial Organizations should e-file Form 990 if they have gross receipts of $200,000 or more (or) assets of $500,000 or more.
Additional Filing Requirements
Based on the data reported on their 990 or 990-EZ return, State-Chartered Credit Unions and Other Mutual Financial Organizations may be required to include certain Schedules.
Also, these organizations may need to file Form 990-T if their unrelated business income is
$1000 or more.
When is the Form 990 Deadline for These Organizations?
The deadline to file 990 series is generally due by the 15th day of the 5th month after the end of the
For organizations following the calendar tax year, the deadline will be May 15th.
Operating on a Fiscal Tax Year? Find your 990 deadline using our due date calculator.
If the deadline falls on a weekend or any federal holiday, the deadline will be pushed to the following
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