What Should Withdrawal Liability Payment Fund Know About Tax Exemption and Form 990 Filing?
- Updated Aug 14, 2023 - 2.00 PM - Admin, Tax990
The IRS has established various IRC sections with specific requirements for the purpose of granting tax-exempt status to nonprofits. Each nonprofit can obtain tax exemption under the corresponding IRC section based on its type and purpose.
This article explains about Withdrawal Liability Payment Fund, how they can obtain an exemption, and what their 990 filing requirements are.
Table of Contents
How Does the IRS Define Withdrawal Liability Payment Fund?
Per the IRC Section 501(c)(22), Withdrawal Liability Payment funds are:
Organizations established and operated for the purpose of providing funds to meet the liability of employers withdrawing from a multiemployer pension fund.
How Can the Withdrawal Liability Payment Fund Apply for
Withdrawal Liability Payment Funds seeking tax exemption from the IRS under Section 501(c)(22) are required to file Form 1024–Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code (IRC).Upon approval of the application, the IRS will send a determination letter to the filing organization (granting them tax-exempt status).
What are the 990 filing Requirements for the Withdrawal Liability Payment Fund?
The Withdrawal Liability Payment Fund that obtained tax-exempt status is required to file 990 Series Forms every year to report their financial information, activities, and certain other details to the IRS.
Here are the different 990 forms available.
Form 990-N - Organizations with gross receipts of $50,000 or less.
Form 990-EZ - Organizations with gross receipts less than $200,000 and assets less than $500,000.
Form 990 - Organizations with gross receipts of $200,000 or more (or) assets of
$500,000 or more.
Additional Filing Requirements
Withdrawal Liability Payment Funds that file 990 or 990-EZ returns may be required to include a few Schedules for reporting additional information.
Also, if their unrelated business income is $1000 or more, they must file Form 990-T.
When is the Form 990 Deadline for the Withdrawal Liability Payment Fund?
Generally, the deadline for filing 990 returns is the 15th day of the 5th month following the end of the accounting period followed by the organization.
So, if these organizations follow the calendar tax year, then their deadline is May 15th.
Operating on a Fiscal Tax Year? Find your 990 due date.
If this due date falls on a weekend or a holiday, then the next business day will be the deadline.
If the due date falls on a weekend or any federal holiday, then the deadline will be pushed to the next
Tax990 Simplifies 990 Filings for Withdrawal Liability
Being an IRS-authorized e-file provider, Tax990 offers a comprehensive e-filing solution for Withdrawal Liability Payment Funds and other tax-exempt organizations to e-file their 990 returns easily and securely.
Here are some of the major features offered by Tax990:
Free Schedules - Based on the data entered on 990 forms, Tax990 automatically includes the applicable 990 Schedules for free.
Easy Filing Process - Tax990 offers Form-based and Interview-style filing options to simplify
Internal Audit Check - Our system audits the completed forms before transmission to ensure accuracy.
Free Retransmission - The returns rejected by the IRS can be retransmitted at no extra cost after the errors are fixed.
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