Nonprofit Tax Filing for Cooperative Organizations to Finance Crop Operations
An overview of applying for tax-exempt status, 990 filing requirements, and IRS deadlines.
What Should Cooperative Service Organizations Know About Form 990 Filing?
- Updated August 14, 2023 - 2.00 PM - Admin, Tax990
The IRS has established various IRC sections to grant tax exemption for organizations that are involved in activities that further any sort of exempt purposes, provided that they meet the requirements mentioned.
This article explains how Cooperative Organizations to Finance Crop Operations can obtain tax-exempt status, what their 990 filing requirements are, and more.
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How Tax990 Simplifies Form 990 Filing for Cooperative Organizations?
Per the IRC Section 501(c)(16), Cooperative Organizations to Finance Crop Operations are established and operated by the farmers’ cooperative associations (or their members) that are exempt under IRC section 521.
Primarily operated to provide financial support for performing agricultural operations in conjunction with activities of marketing or purchasing associations.
Also termed or known as Corporations Organized to Finance Crop Operations.
How Can Cooperative Organizations to Finance Crop Operations Apply for Tax Exemption?
In order to obtain federal tax exemption, Cooperative Organizations to Finance Crop Operations can file Form 1024 - Application for Recognition of Exemption Under Section 501(a) or Section 521 of the IRC.
Once approved by the IRS, the organization will be provided with a determination letter recognizing them as
tax-exempt.
What are the 990 filing Requirements for 501(c)(16) Cooperative Organizations?
The Corporations organized to finance crop operations that obtained federal tax exemption under the IRC section 501(c)(16) doesn’t have the requirement to pay federal income taxes. However, they still have the requirement to complete their annual tax filing, and Form 990 series is what they need to file.
There are various form variants available in the 990 series,
Form 990-N - Cooperative Organizations with gross receipts of $50,000 or less.
Form 990-EZ - Cooperative Organizations with gross receipts less than $200,000 and assets
than $500,000.
Form 990 - Cooperative Organizations with gross receipts of $200,000 or more (or) assets of $500,000 or more.
Additional Filing Requirements
The IRS requires additional information for some of the answers provided in Form 990 or 990-EZ. For this purpose, the Cooperative Organizations may need to include the applicable 990 Schedules.
If the Cooperative Organizations generated an income of $1000 or more from unrelated businesses during the tax year, they must file Form 990-T.
Note:
Apart from the 990 forms, these corporations may also be required to file Form 1120-C with the IRS.
When is the Form 990 Deadline for 501(c)(16) Cooperative Organizations to File Form 990?
The deadline to file 990 Series for all 501(c)(16) Cooperative Organizations is the 15th day of the 5th month following the end of their account period.
For organizations following the calendar tax year, the deadline will be May 15th.
Operating on a Fiscal Tax Year? Find your 990 deadline using our due date calculator.
If the deadline falls on a Saturday, Sunday, or any federal holiday, the deadline will be pushed to the following business day.
How Tax990 Simplifies Form 990 Filing for Cooperative Organizations?
As an IRS-authorized e-file provider of 990 forms, Tax 990 provides cooperative organizations and all the other tax-exempt organizations to meet their 990 filing requirements with complete ease and perfection.
Here are some of the amazing features of Tax990 that simplify 990 filings,
Auto Inclusion of Schedules - Based on the data entered on 990 forms, our system automatically includes the applicable Schedules for free.
Bulk upload option - Our system facilitates the bulk upload of contributions and grants details through Excel templates, reducing the time taken to prepare a 990 form.
Copy Data Option - There is an option to copy some of the information reported on prior year 990 returns filed with us onto the current year’s return.
Reviewers and Approvers - The completed return can be shared with the organization’s board members and team for review and approval.
Live Customer Support - We have a team of experts available via live chat, phone, and email to provide instant resolutions for any questions.
