Guide to Tax and Reporting Compliance for 501(c)(3) Non-Profits

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Guide to Tax and Reporting Compliance for 501(c)(3) Non-Profits In order to apply for tax status: Form 1023 must be filed to claim exemption from corporate income taxes, apply for a non-profit bulk mail permit, and provide tax deductions for contributors to your organization. Form SS-4 must be filed in order to obtain a Federal Employer Identification Number, even if the organization does not have paid staff at the present time. It is wise to obtain the FEIN. This number is used when communicating with the IRS. Each year the 501(c)(3) organization must file: Form 990 and Schedule A within four and one-half months of the close of the organizations fiscal year. The organization has no choice in this matter. Failure to file may result in fines of $10 per day (up to a maximum of $5,000) for each failure. There is no statute of limitations! If you cannot file your 990 on time, you may request an extension of two additional months by filing Form 2758. This form must be filed no later than the due date of your 990. If your organization reports more than $1,000 in unrelated business income, you must also file Form 900- T. (If this is the case, it is strongly recommended that you have an annual outside audit by a qualified CPA firm. Have them file your 990 and 990-T as part of your contract.) If you have paid employees you must file: Form W-3, reporting a summary of all wages and withholdings for the preceding calendar year, due by February 28th. Form 941, a quarterly report of wages and withholding for the prior quarter. Form 8190, used to deposit social security and federal tax withholding, due at a commercial bank or Federal Reserve Bank no later than the 15th day of the following month. (NOTE: If your quarterly withholding is less than $500, you may mail the money to IRS along with form 941, if your monthly withholding is more that $3,000 you must deposit within three banking days.) If you pay Individual contractors more than $600 in any one calendar year, you must file: Form 1099, to report directly to individuals a summary of payments to them (for honoraria, consulting fees, contract services, etc). Due by February 28th. Form 1096, to report totals of all 1099's to the Internal Revenue Service. Due by February 28th. If you wish to change your method of accounting you must file: Form 3115, to alert the IRS of your change in accounting methods. Due within 180 days of the start of the fiscal year in which the change takes place. If you wish to change your fiscal year you must file: Form 1128, to request permission to change your accounting period. The change cannot be made until the Internal Revenue Service approves the change. If you wish to engage in lobbying activities and use any part of your budget for lobbying activities, you may need to file: Form 5768, to report lobbying activities or any significant change in your lobbying activities. (Note: You really need legal advice on this one. Do not file without consulting a qualified tax attorney.)

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10/15/2013 5:12 PM