Rev. Rul. 72-37

Revenue Ruling 69-282, C.B. 1969-1, 155, provides that state law determines whether organizations are "credit unions" for purposes of exemption from Federal income tax under section 501(c)(14)(A) of the Internal Revenue Code of 1954. That ruling concludes that an organization that was not formed and does not operate under the state law governing credit unions is not a credit union under section 501(c)(14)(A) of the Code and accordingly is not exempt from Federal income tax. Held, Revenue Ruling 69-282 stands only for the proposition that to be considered for qualification as a credit union for Federal income tax purposes an organization must qualify as a credit union under applicable state law. However, to qualify as a credit union exempt from Federal income tax under section 501(c)(14)(A) a credit union must, in addition to being chartered under a state credit union law, operate without profit and for the mutual benefit of its members as required by the Federal statute.

Revenue Ruling 69-282 is hereby clarified.