Nonprofit Tax Filing Requirements for Voluntary Employees Beneficiary Associations
An overview of applying for tax-exempt status, 990 filing requirements, and IRS deadline.
What Should Voluntary Employees Beneficiary Associations Know About Tax Exemption and Form 990 Filing?
- Updated August 14, 2023 - 2.00 PM - Admin, Tax990
Based on their type and the primary purpose of operation, a nonprofit organization can obtain federal tax exemption under the corresponding IRC section, provided that they meet the requirements established.
This article elaborates on how Voluntary Employees Beneficiary Associations can obtain tax-exempt status and their tax filing requirements.
Table of Contents
How Does the IRS Define Voluntary Employees Beneficiary Associations?
According to the IRC Section 501(c)(9), Voluntary Employees Beneficiary Associations are organizations whose substantial operations are for the purpose of providing payment for life, sick, accident, or similar benefits to members or their dependents or designated beneficiaries.
Generally, these organizations' members are employees and have an employment-related
common bond.
How Can Voluntary Employees Beneficiary Associations Apply for Tax Exemption?
The Voluntary Employees Beneficiary Associations that seek tax-exempt status under IRC section 501(c)(9) can file Form 1024– Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code.
However, in order to be eligible for exemption, these associations must meet the following requirements.
Should be a voluntary association of employees
Should provide for payment of life, sick, accident, or other benefits to members as described earlier.
The net earnings shouldn’t inure to the benefit of any private individual or shareholder (except as scheduled benefit payments)
What are the 990 filing Requirements for the Voluntary Employees Beneficiary Associations?
The Voluntary Employees Beneficiary Associations that obtained tax-exempt status are required to file 990 Series Forms every year to report to the IRS with the details such as financial details, activities, and more.
Voluntary Employees Beneficiary Associations should e-file Form 990-N when they have gross receipts values of $50,000 or less.
Voluntary Employees Beneficiary Associations should file Form 990-EZ when they have gross receipts values of less than $200,000 and assets less than $500,000.
Voluntary Employees Beneficiary Associations should file Form 990 when they have gross receipts values of $200,000 or more (or) assets of $500,000 or more.
Additional Filing Requirements
Voluntary Employees Beneficiary Associations that file 990 or 990-EZ Forms may need to include certain Schedules for reporting additional information.
Also, if their unrelated business income is $1000 or more, they must e-file Form 990-T as well.
When is the Form 990 Deadline for the Voluntary Employees Beneficiary Associations?
Generally, the 990 deadlines are due by the 15th day of the 5th month following the end of the accounting period, followed by Voluntary Employees Beneficiary Associations.
So, for associations following the calendar tax year, the deadline is May 15th.
Operating on a Fiscal Tax Year? Find your 990 due date.
If this deadline falls on a weekend or a federal holiday, the deadline will get pushed to the next business day.
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