Expedition Credit Union

PART X, LINE 2:

“As allowed by state regulatory authorities, the audit is done as of september 30. The reporting period for the auudit, therefore, does not match the reporting period for the 990. Per footnote 1 in the credit union's septebmer 30, 2017 audited financial statements: the credit union is exempt, under internal revenue code (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. The credit union has filed tax returns in the past for activities it has deemed taxable. The taxing authorities have the ability to assess taxes, penalties, and interest for any years for which no tax return was filed. In the opinion of management, any liability resulting from taxing authorities imposing income taxes on the net taxable income from activities potentially deemed to be unrelated to the credit union's exempt purpose is not expected to have a material effect on the credit union's financial position or results of operations. The credit union has adopted the income tax standard for uncertain tax positions; as a result, the credit union evaluated its tax positions and determined no uncertain tax positions exist as of september 30, 2017 and 2016. The credit union's 2013 and subsequent tax years are open for examination by federal and state taxing authorities.”