WASHINGTON, DC (November 17, 2025) |
Today, the Defense Credit Union Council, DCUC, sent a letter to the Senate Banking Committee and the House Financial Services Committee firmly opposing proposals to require federal credit unions to file IRS Form 990.
In the letter, DCUC reminds that federal credit unions have been exempt from Form 990 for more than 50 years. Because federal credit unions have no federal income tax liability, Form 990 would provide no meaningful new information to regulators.
DCUC notes that credit unions already operate under extensive oversight and transparency requirements, submitting detailed quarterly Call Reports to the National Credit Union Administration (NCUA), covering thousands of data points far more comprehensive than the information included in Form 990. DCUC’s letter stressed that mandating an additional filing would duplicate existing disclosures while imposing unnecessary administrative costs, especially on smaller institutions.
DCUC Chief Advocacy Officer Jason Stverak shared how these burdens would divert resources away from serving members, including military families and veterans who rely on credit unions for affordable loans, financial counseling, and support during events such as government shutdowns. “Every dollar spent on duplicative compliance is a dollar not returned to members through better rates, lower fees, or community programs,” says Stverak.
Stverak also highlighted that the renewed push for Form 990 is being driven not by regulators or transparency concerns, but by banking trade associations seeking to undermine credit unions’ tax-exempt status.
DCUC called attention to double standards within the banking industry, including the widespread use of Subchapter S status under which many banks avoid corporate income taxes without any comparable public disclosure.
DCUC reminded that credit unions deliver essential services to communities and local families, often in places and circumstances where banks have deserted or find unprofitable. Imposing new reporting mandates would weaken credit unions’ ability to fulfill this mission and ultimately harm consumers.
DCUC urges Congress to reject any effort to eliminate or narrow the Form 990 exemption for federal credit unions and to continue supporting the credit union model that provides meaningful benefits to millions of Americans.