Addressing Federal Tax-Exempt Status;
(NOT Ohio Sales Tax, NOR Ohio Income Tax)
For both Subordinate and Pomona Granges
TWO IMPORTANT IRS TAX DEADLINES
Edited Copy of E-mail sent January 30, 2013
February 15 (or May 15 –see below) is the deadline for tax-exempt Granges to file the electronic 990-n. If you have NOT filed yet, the following Granges should do so:
(1) Subordinate Granges who were not revoked; their fiscal year IS October 1 – September 30, and
(2) Granges who have filed for reinstatement, claiming the October 1 – September 30 fiscal year, and have received an official letter from IRS declaring that they have been reinstated, (However, if you successfully filed for reinstatement using the calendar year as your fiscal year, your filing deadline is May 15th.), and
(3) Most Pomona Granges.
Pomona Granges should be able to file for the first time successfully (if you hadn’t filed previously - before 2012). However, there have been cases where some Pomona Granges have been mistakenly posted (by IRS personnel) as over $50,000.00 in annual receipts and have therefore been erroneously placed in a category not able to file the electronic 990-n. If this is the case, you will not be allowed to file as such yet, and you need to contact Gary at the OSG office so he can have the IRS put your Pomona Grange in the proper category in order for you to be able to file the electronic 990-n.
NOTE: If you have filed for reinstatement, but have not received a determination by your 990-n filing deadline (February 15 or May 15 – see above), you are not required to file anything else.
March 15 is the deadline for revoked Granges who have opted to remain non-exempt by not filing for reinstatement. You should file an IRS Form 1120 for the first time as a new non-exempt entity. If you already filed an 1120 by December 15, 2012, maintaining the October 1 – September 30 fiscal year, you’re already okay.
Now, since the time you were revoked, you have not been, and currently are not under the Ohio State Grange’s tax-exempt umbrella. Therefore, you need not stay with the Ohio State Grange’s October 1 – September 30 fiscal year. You may choose the calendar year as your tax filing year. In this case, you have a March 15, 2013 deadline for filing your 1120.
When filing the IRS Form 1120 for the first time, be sure to check the ‘Initial return’ block just under the ‘Name/Address’ block at the top of the first page. To file for the calendar year, simply don’t fill in the lines ‘or tax year beginning…..’ at the top of that page. If you are non-exempt and have not filed yet, please consider filing for the first time, using the calendar year, which gives you the March 15th deadline.
As always, if there are questions or concerns, please contact Gary at the OSG office.
IRS Form 1120
IRS Form 1120 Instructions
Updated February 26, 2013
If you decide to remain NON federal tax-exempt; you need to do nothing other than to file an IRS Form 1120 each year between January 1 and March 15 and to pay a 15% tax on your profits. Doing this, you also have another route to consider:
(A) you may pay all 15% tax on your profits to IRS or
(B) you could pay 5% to IRS and donate 10% of those profits (prior to the end of the tax filing year) to any 501(c) type organization. If you do this, you will need to keep accurate records to be able to show what your income, expenses, and donations were.
Edited Copy of E-mail sent December 6, 2012
IF YOUR Grange’s tax-exempt status WAS NOT revoked, AND someone has filed a 990n for your Grange for the previous fiscal year, you may disregard the rest of this e-mail.
IF SOMEONE from your Grange has filed for reinstatement, and you haven’t received a determination letter yet, you do not file a 990n or Form 1120. You wait until you receive the determination letter from IRS; it will tell you what to do.
Copy of E-mail sent December 15, 2012
All Grange in Ohio at all levels who have received a notice of revocation from IRS are, at that point, NO LONGER UNDER THE OHIO STATE GRANGE TAX-EXEMPT UMBRELLA as a 501(c)5. Therefore, if you receive a reply from IRS concerning your reinstatement procedure, it may be advisable change your status to a (c)4, a (c)8, or a (c)10 from the (c)5 that the Ohio State Grange is. A 501(c)5 is classified as labor, agricultural, or horticultural organizations. When the Ohio State Grange applied for its tax-exempt status, it was very much an agricultural organization and much more so than it actually is today. Some of the questions some Granges have had to address from an IRS specialist to be reinstated as a (c)5 require more specific agricultural answers than most current Granges are able to truly provide. Since (c)4, (c)8, and (c)10 are for fraternal and social societies, those requirements are more to the actual working policies of today’s Granges and are easier to provide appropriate answers.
So, if you plan to, but still haven’t yet submitted your 1024 yet, under Part I. Identification of Applicant you should select square b, f, or h, and NOT c, as I had suggested in my initial ‘Procedural Checklist’, and, if you already have submitted it and are assigned to an IRS specialist, you may want to seriously consider changing it.
Pomona Grange Tax-Exempt Updates
For the latest information concerning filing the 990-n for Pomona Granges, go to
Pomona Grange 990-n Filing Information