Nonprofit Tax Filing Requirements for Teachers' Retirement Fund Associations
An overview of applying for tax-exempt status, 990 filing requirements, and IRS deadline.
What Should Teachers' Retirement Fund Associations Know About Tax Exemption and Form 990 Filing?
- Updated August 14, 2023 - 2.00 PM - Admin, Tax990
In order to more easily and accurately grant federal tax exemption to nonprofit organizations, the IRS has established various sections of the IRC. Depending on the type of organization and its operational purpose (along with a few other factors), the IRS classifies a nonprofit under the applicable section.
This article details how the IRS defines Teachers’ Retirement Fund Associations, how they can obtain federal tax exemption, and what their 990 tax filing requirements are.
Table of Contents
How Does the IRS Define Teachers' Retirement Fund Associations?
Per IRC Section 501(c)(11), Teachers’ Retirement Fund Associations are established between teachers and operated exclusively for the purpose of providing retirement benefits.
Generally, these associations are purely “local in character,” and the memberships are limited to teachers and school employees.
How Can the Teachers' Retirement Fund Associations Apply for Tax Exemption?
Teachers’ Retirement Fund Associations seeking tax-exempt status under Section 501(c)(11) should file Form 1024–Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal
Revenue Code.
In order to be eligible to apply, these associations must fulfill the following requirements:
The income of these associations should come solely from:
- Public taxation
- Teaching salaries of members
- Investments
Business activity is conducted as an investment
None of the association’s net earnings should benefit any private shareholder or individual.
What are the 990 filing Requirements for the Teachers' Retirement Fund Associations?
While Teachers’ Retirement Fund Associations that have obtained tax-exemption may not be required to pay federal income tax, they’re still required to report certain information about their financial details and activities to the IRS annually. This is done by filing a Series 990 Form–based on the organization’s gross receipts/assets, they’ll file the appropriate form:
Form 990-N - Teachers' Retirement Fund Associations with gross receipts of $50,000 or less.
Form 990-EZ - Teachers' Retirement Fund Associations with gross receipts less than $200,000 and assets less than $500,000.
Form 990 - Teachers' Retirement Fund Associations with gross receipts of $200,000 or more (or) assets of $500,000 or more.
Additional Filing Requirements
Associations may be required to attach additional Schedules (used to provide more details on certain information), depending on the data they report on their 990 or 990-EZ form.
If the unrelated business income of these associations is $1000 or more, they must
file Form 990-T electronically.
When is the Form 990 Deadline for the Teachers' Retirement Fund Associations?
The deadline for filing 990 returns is (generally) the 15th day of the 5th month following the end of the accounting period followed by the organization.
Organizations operating on a calendar tax year have a deadline of May 15th.
Operating on a fiscal tax year? Find your 990 deadline here.
If the deadline falls on a weekend or any federal holiday, the deadline will be pushed back to the next
business day
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