Nonprofit Tax Filing for Civic Leagues and Social
Welfare Organizations
An overview of applying for tax-exempt status, 990 filing requirements, and IRS deadlines.
What Should Civic Leagues and Social Welfare Organizations Know About Form 990 Filing?
- Updated August 14, 2023 - 2.00 PM - Admin, Tax990
A nonprofit can be defined by its operational purposes and the type of organization. Based on how the organization is defined, the IRS may grant them an exemption from paying federal taxes if they fulfill
certain requirements.
This article covers information on how Civic Leagues and Social Welfare Organizations can obtain federal tax exemption, what their tax filing requirements are, and more.
Table of Contents
How Does the IRS Define Civic Leagues and Social
Welfare Organizations?
The IRC Section 501(c)(4) describes Social Welfare Organizations and Civic Leagues as organizations that are organized and operated exclusively for the furtherance of any social welfare purposes.
Generally, these organizations are not organized for profit and are involved in activities that promote the general welfare of the community in one or more ways.
Political activities and certain social activities carried out for the benefit, pleasure, or recreation of members are not considered activities that promote Social welfare.
How Can Civic Leagues and Social Welfare Organizations Apply for Tax Exemption?
Civic Leagues and Social Welfare Organizations that would like to operate as tax-exempt organizations under the IRC Section 501(c)(4) must file Form 8976, Notice of Intent to Operate Under Section 501(c)(4).
It’s important that these organizations notify the IRS within 60 days from the date when they were formed.
Apart from Form 8976, these organizations may also file Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code, in order to apply for recognition of tax-exempt status. Both these forms must be filed electronically.
Note:
These organizations are required to file Form 8976 even if they file Form 1024-A.
What are the 990 filing Requirements for
501(c)(4) Organizations?
The Social Welfare Organizations and Civic Leagues that obtained tax-exempt status from the IRS under section 501(c)(4) aren’t subjected to federal income taxes. However, they must report their financial status, activities, and certain other information to the IRS every year by filing 990 Series Forms annually.
Here are the different types of 990 forms available,
Form 990-N - Social Welfare Organizations and Civic Leagues with gross receipts less than or
equal to $50,000.
Form 990-EZ - Social Welfare Organizations and Civic Leagues with gross receipts less than $200,000 and assets less than $500,000.
Form 990 - Social Welfare Organizations and Civic Leagues with gross receipts of $200,000 or more (or) assets of $500,000 or more.
Additional Filing Requirements
The IRS requires organizations to attach 990 Schedules for reporting additional information or explanation for some of the answers provided on Form 990 or 990-EZ.
Also, if the Social Welfare Organizations or Civic Leagues have an unrelated business income of $1000 or more during the tax year, they must file Form 990-T.
When is the Form 990 Deadline for 501(c)(4) Organizations?
The deadline to file Form 990 for Social Welfare Organizations and Civic Leagues is the 15th day of the 5th month after the end of their accounting period.
If these organizations follow the calendar tax year, then the deadline will be May 15th.
Operating on a fiscal tax year? Find out your 990 deadline
Note:
If the deadline falls on a weekend of a federal holiday, the organizations must file their 990 form by the next business day.
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