Nonprofit Tax Filing for Cemetery Companies
An overview of applying for tax-exempt status, 990 filing requirements, and IRS deadlines.
What Should 501(c)(13) Cemetery Companies Know About Form 990 Filing?
- Updated August 14, 2023 - 2.00 PM - Admin, Tax990
Cemetery companies are one type of nonprofit organization eligible for federal tax-exempt status, provided they meet the requirements established by the IRS.
The following information details what the requirements for cemetery companies to obtain tax-exempt status are, what the 990 filing requirements for tax-exempt cemetery companies are, important deadlines, and more.
Table of Contents
How the IRS Defines a Cemetery Company?
IRC section 501(c)(13) defines cemetery companies as organizations operating under the specific purpose of body disposal through burial or cremation, that do so without generating profit.
Cemetery companies must be chartered specifically for burial or cremation; they should not be part of any business not necessarily incident to that purpose.
501(c)(13) Requirements for Cemetery Companies
Though individual cemetery companies may vary in their operations and policies, IRC section 501(c)(13) requires the following regulations be met in order to be eligible for federal tax exemption:
The cemetery company must be operated solely for the benefit of its members and not for profit. Charitable activities such as the burial of indigents is permitted.
The organization’s earnings must be dedicated to the operation, maintenance, and improvement of the cemetery property.
No part of the organization’s net earnings should benefit any private shareholder or individual.
The organization should have been authorized to issue preferred stock after November 28, 1978.
How Cemetery Companies Obtain 501(c)(13) Tax-Exempt Status?
Provided the cemetery company has met all the requirements of section 501(c)(13), they can file Form 1024–Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code to obtain federal tax exemption.
Form 1024 must be filed electronically. The updated form can be found at Pay.gov. Once approved, the filing organization will receive tax-exempt status.
990 Filing Requirements for 501(c)(13) Cemetery Companies?
While 501(c)(13) tax-exempt cemetery companies do not pay federal income tax, they still must report their financial details, activities, and certain other information to the IRS annually. This is done by filing a Form 990 Series form.
Based off information regarding their gross receipts and assets, cemetery companies will file the
applicable form:
Form 990-N : Filed by organizations with gross receipts less than or equal to $50,000.
Form 990-EZ : Filed by organizations with gross receipts less than $200,000
and assets less than $500,000.
Form 990 : Filed by organizations with gross receipts greater than or equal to $200,000 and assets greater than or equal to $500,000.
Additional Filing Requirements for Cemetery Companies
Cemetery companies that file Form 990 or 990-EZ may be required to report additional information through 990 Schedules.
Cemetery companies that file Form 990 or 990-EZ and also have unrelated business income of $1000 or more during the tax year must file Form 990-T.
990 Filing Deadlines for 501(c)(13) Cemetery Companies?
The deadline for cemetery companies to file 990 Series Forms is the 15th day of the 5th Month following the end of their accounting period.
For cemetery companies 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 this deadline falls on a Saturday, Sunday, or any federal holiday, the deadline will be pushed to the next business day.
How Tax990 Can Help Simplify 990 Filings for Cemetery Companies!
Tax990, the leading IRS-authorized e-file provider, removes all the hassle involved in preparing and filing your 990 form with features like:
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check system.
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