Blaze Credit Union

PART X, LINE 2:

“Part x: as allowed by state regulatory authorities, the audit is done as of june 30. The reporting period for the audit, therefore, does not match the reporting period for the 990. Per footnote 1 in the credit union's june 30, 2016 financial statements, the credit union is exempt, under irc 501 (c) (14), from federal and state income taxes. Certain products and services provided by select state chartered credit unions have been deemed by the internal revenue service (irs), in technical advice memorandums (tams) released in 2007, to be unrelated to the specific entity's exempt purpose. As presented in the technical advice memorandums, the net taxable income from these products and services would be subject to income taxes. Credit unions have litigated against the irs positions noted in the tams and have been successful in having courts declare in 2009 and 2010 that revenue from insurance products sold to members, helping them protect their financial wellbeing, qualifies as exempt purpose income, contrary to the irs position in the tams. Spire credit union converted to a state chartered credit union on june 1, 2014 resulting in it being subject to unrelated business income tax. The credit union evaluated its tax positions and determined no uncertain tax positions exist as of june 30, 2016 and 2015. The credit union's 2015 and 2016 tax years are open for examination by federal and state taxing authorities. The cuso (rochdale agency), however, is subject to federal and state income taxes. The subsidiary has filed tax returns in the past. The subsidiary has evaluated its tax positions and determined no uncertain tax positions exist as of june 30, 2016 and 2015. The subsidiary's tax years 2013 and forward are open for examination by federal and state taxing authorities.”