Tax 990

Nonprofit Tax Filing for Cooperative Service Organizations of Operating Educational Organizations

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

What Should Cooperative Service Organizations Know About Form 990 Filing?

- Updated August 14, 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 Cooperative Service Organizations, how they can obtain tax-exempt status, and what their 990 filing requirements are.

How Does the IRS Define Cooperative Service Organizations of Operating Educational Organizations?

As per the IRC section 501(f), Cooperative Service Organizations of Operating Educational Organizations are established and operated solely for the purpose of performing collective investment services for any educational organizations.

How Can Cooperative Service Organizations Apply for
Tax Exemption?

In order to obtain federal tax exemption, Cooperative Service Organizations involved in the services described above will need to file Form 1023 - Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.

They may also be eligible to file Form 1023-EZ based on their answers to the eligibility worksheet. For more information, visit here.

What are the 990 Filing Requirements for 501(f) Cooperative Service Organizations?

All Business Leagues and other similar organizations with 501(c)(6) 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, Business Leagues and other similar organizations will file the applicable form:

The gross receipt value for the organization is less than or equal to $50,000 should
file their form 990-N electronically

The gross receipt and total assets value of the organization is less than $200,000 and assets less than $500,000 should file form 990-EZ.

The gross receipt value of the organizations is greater than or equal to $200,000 and assets greater than or equal to $500,000 should file their form 990.

Additional Filing Requirements

Cooperative Service Organizations and other 501(c)(6) organizations 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 Cooperative Service Organizations to File Form 990?

The deadline to file 990 Series for Cooperative Service Organizations Forms 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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