Credit Unions and Automatic Revocation of Exemption: State Credit Union Listed as Revoked
Situation Two: A state credit union appears on the Auto-Revocation List.
A state credit union may appear on the Auto-Revocation List because IRS records show the organization has failed to file a required annual return for three years.
If your organization is a state credit union whose tax-exempt status has been automatically revoked for not filing a required annual information return for three consecutive years, it must apply for reinstatement of tax-exempt status.
If you believe your state credit union is on the Auto-Revocation List in error, you must contact the IRS to explain the situation and provide the information required to update IRS records.
The three most common reasons for erroneous inclusion of state credit unions on the List are:
1. IRS records may not reflect that your organization is now a federally chartered credit union under the supervision of the National Credit Union Association (NCUA). Please see Situation One.
2. IRS records may not reflect that your state credit union was, but is no longer, a federally chartered credit union under the supervision of the NCUA for one or more years during the three-year period for which it was revoked for not filing. In this situation, please write a letter to that effect as described in the Frequently Asked Question, My organization was a state credit union exempt under Internal Revenue Code section 501(c)(14), but reorganized as a federal credit union exempt under section 501(c)(1). How do we let the IRS know we are no longer required to file an annual information return?
3. IRS records may not reflect filing of one or more required returns during the three-year period. In this situation, please see the Frequently Asked Question, If an organization on the Auto-Revocation List has documentation that it met its filing requirement for one or more years during the three year period, what should it do?