DCUC to Treasury: Reject Bank-Backed Form 990 Mandate for Federal Credit Unions

WASHINGTON, DC – Today, the Defense Credit Union Council, DCUC, sent a letter to U.S. Treasury Secretary Scott Bessent expressing strong opposition to recent banking-industry proposals that would require federal credit unions to file IRS Form 990.

DCUC reminded that federal credit unions have been exempt from this filing for more than 50 years, a deliberate policy ruled by Congress recognizing their unique, member-owned, not-for-profit structure and lack of federal income tax liability. 
 
DCUC noted that credit unions already operate under extensive transparency and oversight requirements, including quarterly NCUA Call Reports containing thousands of data points on their financial operations, executive compensation, and lending practices. Because these disclosures already exceed what Form 990 would provide, DCUC stressed that imposing the additional mandate would be duplicative, unnecessary, and offer no benefit to regulators or the public. 
 
“Federal credit unions already meet some of the most rigorous transparency and reporting standards in the financial sector,” said Anthony Hernandez, DCUC President/CEO. “Adding a redundant Form 990 requirement would only drain resources from the very communities we exist to serve, especially military families and veterans who rely on credit unions during emergencies and government shutdowns.” 
 
In its letter, DCUC warned that the proposal is being pushed by the banking lobby, not regulators or consumer advocates, and appears designed to burden credit unions with new compliance costs rather than improve transparency.  
 
DCUC also highlighted the role credit unions played during recent federal government shutdowns, providing zero-interest relief loans, waived fees, and offering financial counseling to military families and furloughed employees. Imposing new reporting requirements in response to these efforts would unfairly penalize institutions that consistently step up in times of crisis. 
 
DCUC urged Secretary Bessent to reject any attempt to eliminate or narrow the long-standing Form 990 exemption and reaffirmed its commitment to protecting consumers and maintaining a balanced, equitable regulatory environment. ​