Nonprofit Tax Filing for Cooperative Hospital
Service Organizations
An overview of applying for tax-exempt status, 990 filing requirements, and IRS deadlines.
What Should Cooperative Hospital Service Organizations Know About Form 990 Filing?
- Updated August 14, 2023 - 2.00 PM - Admin, Tax990
If an organization is involved in the furtherance of any exempt purposes, it can be eligible to obtain federal tax exemption. Also, a few IRC sections grant tax exemption for certain organizations that are related to these exempt organizations, provided that they meet the requirements described.
This article discusses how Cooperative Hospital Service Organizations can obtain tax-exempt status, their 990 filing requirements, and more.
Table of Contents
How Does the IRS Define Cooperative Hospital Service Organizations?
As per the IRC Section 501(e), Cooperative Hospital Service Organizations are organized and operated with the primary purpose of providing one or more cooperative services to the 501(c)(3) tax-exempt organizations.
The organization must provide services solely for two or more hospitals, and each of those hospitals should be exempt under IRC 501(c)(3)
The services may include,
- Data Processing
- Purchasing
- Warehousing
- Billing and Collection
- Food
- Clinical
- Industrial Engineering
- Laboratory
- Printing
- Communications
- Record Center
- Personnel Services (This includes Selection, Testing, Training, and Education of Personnel)
How Can Cooperative Hospital Service Organizations Apply for Tax Exemption?
If the organization meets the requirements mentioned above, it can apply for tax-exempt status under the IRC section 501(e).
In order to apply for tax-exempt status, the organizations must file Form 1023 - Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.
They may also be able to choose Form 1023-EZ based on their answers to the eligibility worksheet.
What are the 990 filing Requirements for Cooperative Hospital Service Organizations?
Just like all the other tax-exempt organizations, 501(e) Cooperative Hospital Service Organizations are also not subjected to federal income taxes. But, they still have an annual filing requirement that they should fulfill in order to stay compliant with the IRS. Cooperative Hospital Service Organizations must file 990 Forms annually to provide the IRS with details regarding their financial status, activities, and more.
Here are the different types of 990 forms available,
Form 990-N - Cooperative Hospital Service Organizations with gross receipts of less than or
equal to $50,000.
Form 990-EZ - Cooperative Hospital Service Organizations with gross receipts less than $200,000 and assets less than $500,000.
Form 990 - Cooperative Hospital Service Organizations with gross receipts of $200,000 or more (or) assets of $500,000 or more.
Additional Filing Requirements
Cooperative Hospital Service Organizations may be required to attach certain Schedules in order to report a few additional information based on the data they report on their Form 990 or 990-EZ.
Also, if the Cooperative Hospital Service Organization’s unrelated business income is $1000 or more during the tax year, they must file Form 990-T.
When is the Due Date for 501(e) Cooperative Hospital Service Organizations to file Form 990?
The due date to file form 990 for 501(e) Cooperative Hospital Service Organizations is the 15th day of the 5th Month after the end of their accounting period.
So, if a Cooperative Hospital Service Organization follows the calendar tax year, then their 990 deadline is
May 15th.
Operating on a fiscal tax year? Use our due date calculator to find your 990 deadline
If this deadline falls on a weekend or holiday, 990 forms must be filed by the next business day.
Form 990 Filing Made Easy for Cooperative Hospital Service Organizations!
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Some of the exclusive features offered by Tax990 include,
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