Corporate Non-Profit Tax Filing Requirements
Even tax-exempt businesses must file returns in order to remain compliant with Internal Revenue Service laws. The type of return you file depends on your gross annual receipts. If your organization conducts other business that does not meet IRS exemption requirements, you will need to file a separate return to report this income. Finally, employees' income must be reported and taxes withheld and deposited.
Exempt Organization Return
With the exception of churches and some state, local or religious entities, nonprofit organizations must file an information return every year to report income, expenses and the type of work performed by the business. Organizations with gross receipts totaling less than $25,000 can file using an e-postcard, also known as form 990-N. Those with higher receipts must file form 990 or 990-EZ. The latter is for smaller nonprofit groups, as well as nonexempt charitable trusts.
Unrelated Business Taxable Income
Nonprofits sometimes conduct business unrelated to their core function. If this business does not fall under the definition of exempt income, it must be reported, minus deductions, on form 990-T. Filing requirements are based on the amount of gross unrelated business taxable income. Check the form's instructions for the current tax year's amount.
Employee Wage Withholding and Reporting
Your organization's income may be tax-exempt, but your employees' is not. Use the employee's form W-4 in conjunction with information in Publication 15, Employer's Tax Guide, to calculate the amount to withhold. Report wages using form 941, or 943 for agricultural employees. Use form 944 if employee income amounts to less than $1000 for the tax year.
Employment Tax Deposits
Federal tax deposits can be made in a variety of ways. The taxes withheld from employees' wages, the matching amounts provided by your organization, and Federal Unemployment taxes can be deposited electronically using the EFTPS application on the IRS website. You can also make your payment with form 8109-B at an authorized financial institution, or mail it to the address found in the instructions. Form 8109-B on the IRS website is for informational purposes only. See the "Forms and Publications" page for information on ordering this type of form, if you have not already received your organization's pre-printed tax deposit coupons.
