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Michigan Credit Union League

Credit Unions Receive Good News on IRS 990

The Department of Insurance and Financial Services (DIFS), as well as the Michigan Credit Union League, have been working diligently with the Internal Revenue Service (IRS), and we finally received some good news. As you know, several state-chartered credit unions received a vague notice that appeared to threaten a revocation of group tax exempt status. The IRS has now confirmed suspicion that the notices were erroneous and were a result system issue.

The IRS has committed to working with DIFS to address and resolve the issue. The IRS has recoded Michigan’s tax-exempt parent organization within the IRS systems as tax exempt. This may take some time to be completed within their systems, but the group exemption will once again be in effect soon. DIFS has stated as soon as they receive the notice of resolution they will contact credit unions.

Because of the way IRS filters these updates through their systems in batches, they stated the public website will not be updated until approximately Sept. 30, 2018.

To ensure these problems are completely resolved, the IRS advisor asked that all subsidiary institutions complete their 990 returns as required and by the deadlines provided. The IRS has committed to assist DIFS in addressing any further issues they or a Michigan charter may have related to this error, including if a subsidiary 990 is rejected when filed, If any further revocation notices are received by your charter or if your group exemption does not show up on the system by Sept. 30.

Please continue to notify DIFS and MCUL of any IRS notices your credit union receives or if your institution’s 990 filings are rejected by the IRS. By doing so, DIFS can reach out to the appropriate contacts and ensure the issue is resolved appropriately. Please contact Sarah Stevenson with any questions.

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2018-09-21 00:00:00