Wednesday, October 21, 2015

Lawsuit: Large Idaho CU Lost Tax Exemption and Thrived

A lawsuit, Johnson v. Beehive Federal Credit Union Et Al., filed in United States District Court for the District of Idaho states that an Idaho credit union had lost its tax exemption and thrived.

The lawsuit was brought by Chris Johnson, who was president and chief executive officer of the Idaho Credit Union League in 2013.

According to the complaint (Paragraph 2(c)), "one of Idaho’s largest credit unions had recently, for one or more years, lost its federal tax exemption and had paid federal income taxes. This occurrence presented an existential predicament for the credit union movement in Idaho because the cornerstone of credit unions’ federal tax exemption is that without the exemption credit unions cannot be financially viable institutions, and yet the continued financial success of the taxpaying credit union in Idaho had not, in fact, been jeopardized."

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3 comments:

  1. AnonymousOctober 21, 2015 at 7:48 AM

    What's the lawsuit about??
    Who is suing who?

    ReplyDelete
  2. Keith LeggettOctober 21, 2015 at 7:56 AM

    Johnson is suing current and former directors of the Idaho Credit Union League for defamation and emotional distress. Also, Johnson is suing the directors of Capital Educators FCU for defamation.

    ReplyDelete
  3. AnonymousOctober 21, 2015 at 8:00 AM

    Well that sounds like a little revenge.
    But, then again, we observe a bunch of banks in our market making more roa then us and they pay taxes so yes, it's happening everywhere.
    And their "members" sure seem happy cause we can't get them to switch.

    ReplyDelete

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