Form 990 form Employee Associations

How IRS Define Employee Associations?

● Under IRC section 501(c)(4), an Employee Association is defined as a local organization comprised of employees who are exclusively affiliated with designated individuals or entities within a specific municipality.

● These associations must allocate their net earnings solely towards charitable, educational, or recreational endeavors, and they are prohibited from providing any benefit to private shareholders or individuals.

● Additionally, IRC section 501(c)(4) permits Employee Associations to encompass members employed by various employers within the designated municipality.

Tax-Exemption for Employee Associations - An Overview

● Employee Associations wishing to operate under section 501(c)(4) are obligated to electronically submit Form 8976, known as the Notice of Intent to Operate Under Section 501(c)(4).

● Additionally, these associations have the option to submit Form 1024-A electronically alongside Form 8976. Form 1024-A, titled Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code, facilitates the process of seeking tax-exempt status.

Note: Notably, even if an association opts to file Form 1024-A, they are still required to submit Form 8976.

Steps to File Form 1024-A

Step 1: Register for an account on Pay.gov

Step 2: Search for "1024-A" in the search box and select it

Step 3: Complete the form.

Form 990 Filing for Employee Associations

● Though the employee associations are provided with exemption from income taxes, the IRS requires these organizations to file 990 Series Forms every year.

● This form will report the employee association’s financial information, activities and more.

Which 990 Form should Employee Associations File?

Form 990-N - The organization that has a gross receipt value of $50,000 or less should file Form 990-N.

Form 990-EZ - If the organization has a gross receipt value of less than $200,000 & the assets value is less than $500,000 should e-file Form 990-EZ.

Form 990 - The organization that has a gross receipt value of $200,000 or more (or) the assets of $500,000 or more should file Form 990 online.

Form 990-T - If the organization have an unrelated business income of $1000 or more, they should file Form 990-T.

Deadline for 501(c)(4) Employee Associations to file Form 990

Employee Associations that are granted tax-exempt status under section 501(c)(4) must file Form 990 by the 15th day of the 5th month following the conclusion of their accounting period.

The deadline to file form 990 falls on May 15th those who follows the calendar tax year.

Additional Filing Requirements for Employee Associations

● If a employee associations are required to submit a 990 return, they must make sure to include all necessary 990 Schedules with their return.

● Upon filing 990 Forms, they will need to include all the applicable Schedules. Learn more on Form 990 Schedules

For detailed information about Form 990 Filing for Employee Associations, check out this page: https://www.tax990.com/nonprofits/Employee Associations/

Tax990 is Here to Simplify 990 filings for Employee Associations!

Tax 990, an IRS-authorized e-file provider, offers a comprehensive e-filing solution for the Employee Associations and other nonprofits to e-file their 990 returns easily. Here are some of the helpful features that Tax990 offers:

● Free Schedules

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● Internal Audit Check

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