Credit unions are exempt from federal income tax on income from financial assets.

Name: Credit unions are exempt from federal income tax on income from financial assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Credit unions are exempt from federal income tax because they are member-owned, not-for-profit organizations that return profits to their members in the form of lower fees and higher savings rates, rather than distributing profits to shareholders. This status is recognized under U.S. federal law.

Credit Unions Are Exempt from Federal Income Tax on Income