State Chartered Credit Unions in Florida Envision Credit Union

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“The credit union is exempt from most federal, state and local taxes however, the consolidated subsidiary is not exempt. Usc accounts for taxes in accordance with the provisions of the income taxes topic of the asc. The statement requires that deferred income taxes reflect tax consequences on future years of differences between the tax basis of assets and liabilities and their basis for financial reporting purposes. In addition, this topic requires the recognition of future tax benefits, such as net operating loss carry forwards, to the extent that realization of such benefits are more likely than not. Deferred taxes are provided for purposes of reporting on temporary differences between accounting and taxable income. The income taxes topic of the fasb asc clarifies accounting for uncertainty in income taxes reported in the financial statements. The interpretation provides criteria for assessment of individual tax positions and a process for recognition and measurement of uncertain tax positions. Tax positions are evaluated on whether they meet the more likely than not standard for sustainability upon examination by tax authorities. The credit union is a state chartered credit union as defined in internal revenue code section 501c14. As such, the credit union is exempt from federal taxation of income derived from the performance of activities directly related to its exempt purposes. However, irc section 511 imposes a tax on the unrelated business income ubi derived by state chartered credit unions. Beginning in march 2008, the internal revenue service released technical advice memorandums tams to specific state chartered credit unions specifying the revenue sources subject to unrelated business income tax ubit. Ubit may also be subject to tax in certain states. Management has assessed the credit unions activities and any potential federal or state income tax liability and determined that the credit union has no uncertain tax positions that qualify for either recognition or disclosure in the consolidated financial statements. Additionally, no interest and penalties have been recorded in the accompanying consolidated financial statements related to uncertain tax positions. Currently, the 2013, 2012, and 2011 federal income tax returns are open for examination by the irs. The filing years open for examination by the state, if applicable, may be equal to, greater than or less than the years open for examination by the irs.”