Trusted News for Credit Union Leaders
Credit Union Times
JULY 18, 2018 | VOL. 29 | NO. 24 | CUTIMES.COM
or the privilege of keeping their federal tax exemption and providing
public transparency
about their financials, operations
and governance, nonprofits, including state-chartered credit
unions, are required to submit a
990 form every year to the IRS.
But for two of Michigan’s largest credit unions, their privilege of
maintaining their tax-exempt status could be at risk, or they could
face stiff fines and come under
IRS audit scrutiny, for filing inaccurate and incomplete 990 forms
over several years.
One of the key parts of the 990
form requires credit unions to
fully reveal specific information
about executive compensation,
including the executive’s name,
title, the amount of his or her W- 2
compensation, W- 2 compensation from related organizations
and estimated amount of other
compensation from the credit
union or related organization.
This information must be listed in
this manner in Part VII of the 990
form. Additionally, in Schedule J
of the 990 form, credit unions are
required to report the names and
titles of executives, including their
base salary, bonus and incentive
compensation, deferred and retirement compensation, nontaxable benefits and other reportable
compensation. Y17
990s: Failure
to File
COMPLIANCE
PETER STROZNIAK
pstrozniak@cutimes.com
Must Reads
REGULATIONS
Boosting CU Pot Banking
On July 3, New York Gov. Andrew
M. Cuomo directed the state’s
Department of Financial Servic-
es to support the development
of medical marijuana and indus-
trial hemp businesses by issu-
ing guidance regarding what his
statement announcing the guid-
ance called the “safe and sound
provision of banking services for
these businesses.”
According to Cuomo’s state-
ment, the DFS guidance is de-
signed to encourage New York
state-chartered banks and credit
unions to consider establish-
ing banking relationships with
medical marijuana-related busi-
nesses that are operating in New
York in full compliance with all
applicable New York State laws
and regulations, including the
New York Compassionate Care
Act, and the applicable regula-
tions and requirements of the
state Department of Health.
The guidance also encourages
state-chartered banks and credit
unions to support the develop-
ment of industrial hemp busi-
nesses statewide.
“The ability to establish a banking relationship is a challenge that
legal industries face unlike no
other,” Cuomo said. “As the federal government continues to sow
discord surrounding the medical
marijuana and industrial hemp
businesses, New York has made
significant progress in creating a
supportive economic development and regulatory landscape
for these companies.” Y15
FOCUSREPORT:
Credit unions are constantly juggling
members’ security needs with their
desire for a frictionless user experience.
In this Focus Report, learn about a
technology solution that helps CUs
strike a balance between the two by
asking members to take selfies. Y6
FINTECH
GROWTH
CUs Shift Checking Account Strategies
he number of check-
ing accounts has fallen
by almost 100 million
in the last six years, ac-
cording to recent research from
financial institutions analytics
company Moebs Services, but
credit union industry experts said
not every credit union is feeling
the pinch – in fact, many can ben-
efit from the change in the check-
ing landscape if
they know why it’s
happening and
how to capitalize
on it.
Using bank,
thrift and credit
union data from
the NCUA, FDIC
and Federal Reserve, Moebs Services reported in May that the total number of checking accounts
dropped from about 690 million
in 2011 to just over 600 million in
2017 – a 12% decline over six years,
or about 2.2% per year. Those
numbers also include business
accounts, Moebs Services Economist and CEO Michael Moebs told
CU Times.
Much of the drop is due to competition from fintech companies
and retailers such as Walmart,
Starbucks and Apple offering
products that mimic the features
of checking accounts, Moebs said.
“Most depositories don’t re-
alize Walmart, and soon
TINA OREM
torem@cutimes.com
Y16
Moebs
Heard at ACUC
Attendees discuss
CU industry
threats. Y11
Teaming
With Fintechs
New rules
encourage
partnerships. Y10