The largest credit unions should be required to file Form 990 — the standard return filed by most nonprofit entities — with the Internal Revenue Service, Senate Finance Committee Chairman Orrin Hatch (R-Utah) said in a letter to the IRS’ acting commissioner today. Requiring 990s for large and complex credit unions — which is within the discretion of the IRS — would enhance transparency as the credit union business model has significantly evolved, Hatch wrote.
With the exception of credit unions, houses of worship and the very smallest nonprofits, all tax-exempt entities are required to file 990s annually. The form documents balance sheets, expenses and officer and board compensation. Credit unions were exempted because of their supervision by the National Credit Union Administration, Hatch noted, but he added that “during that time there is no question that federal credit unions have grown in size and complexity, which should give us pause to reflect whether that exemption is still warranted.”
