Tax 990

Nonprofit Tax Filing for CO-OP Health Insurance Issuers

An overview of applying for tax-exempt status, 990 filing requirements, and IRS deadlines.

What Should CO-OP Health Insurance Issuers Know About Form 990 Filing?

- Updated December 22, 2023 - 2.00 PM - Admin, Tax990

There are numerous classifications of Nonprofits available based on their primary purpose and how they operate. Based on their classification, the IRS provides tax exemption for these nonprofits under different
IRC sections.

This article elaborates on CO-OP Health Insurance Issuers, how they can obtain tax-exempt status, and what their 990 filing requirements are.

How Does the IRS Define CO-OP Health Insurance Issuers?

A Consumer Operated and Oriented Plan (CO-OP) is a program established under the Affordable Care Act (ACA) to further the creation of qualified nonprofit health insurance issuers that provide competitive health plans in the individual and small group markets.

The IRC section 501(c)(29) defines CO-OP Health Insurance Issuers as Qualified Nonprofit Health Insurance Issuers (QNHIIs) that received a loan or grant under the CO-OP program and have met all the requirements of the program as well as the Centers for Medicare and Medicaid Services (CMS).

Additional requirements for these organizations include:

  • The organization must have applied for tax-exempt status.
  • None of the net earnings are for the benefit of any private shareholder.
  • Must not be involved in any lobbying or political activities.

How Can CO-OP Health Insurance Issuers Apply for
Tax Exemption?

In order to obtain federal tax exemption, CO-OP Health Insurance Issuers must file the following forms:

Form 1024 - Application for Recognition of Exemption Under Section 501(a) or section 521 of the Internal Revenue Code (IRC).

Form 8718 - User Fee for Exempt Organization Determination Letter Request

Upon approval of the application, the IRS will grant tax-exempt status to the CO-OP Health Insurance Issuers under the IRC section 501(c)(29).

What are the 990 Filing Requirements for CO-OP Health Insurance Issuers?

All CO-OP Health Insurance Issuers and other similar organizations with tax-exempt status are required to provide the IRS with details on their financial information and activities every year.

Based off information regarding their gross receipts and assets, CO-OP Health Insurance Issuers and other similar organizations will file the applicable form:

The organizations with gross receipts less than or equal to $50,000 should file form 990-N

The organizations with gross receipts less than $200,000 and assets less than $500,000 should
file form 990-EZ.

The organizations with gross receipts greater than or equal to $200,000 and assets greater than or equal to $500,000 should file form 990 online.

Additional Filing Requirements

CO-OP Health Insurance Issuers may be required additional information through Schedules based on the details they report on their 990 or 990-EZ return.

All organizations that file Form 990 or 990-EZ and have unrelated business income of $1,000 or more during the tax year must file Form 990-T.

When is the Due Date for CO-OP Health Insurance Issuers to File Form 990?

The deadline to file 990 series for CO-OP Health Insurance Issuers is the 15th day of the 5th Month following the end of their accounting 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 this deadline falls on a Saturday, Sunday, or any federal holiday, the deadline will be pushed to the next business day.

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