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How To File Late Tax Returns

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How To File Late Tax Returns

How to file late tax returns 4. How to file late tax returns   Other Section 501(c) Organizations Table of Contents Introduction 501(c)(4) - Civic Leagues and Social Welfare OrganizationsSpecific Organizations 501(c)(5) - Labor, Agricultural and Horticultural OrganizationsLabor Organizations Agricultural and Horticultural Organizations 501(c)(6) - Business Leagues, etc. How to file late tax returns Line of business. How to file late tax returns Examples. How to file late tax returns Improvement of business conditions. How to file late tax returns Exception for local legislation. How to file late tax returns De minimis exception. How to file late tax returns Grass roots lobbying. How to file late tax returns 501(c)(7) - Social and Recreation ClubsLimited membership. How to file late tax returns Support. How to file late tax returns Facilities open to public. How to file late tax returns Gross receipts from nonmembership sources. How to file late tax returns Gross receipts. How to file late tax returns Nontraditional activities. How to file late tax returns 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal SocietiesFraternal Beneficiary Societies (501(c)(8)) Domestic Fraternal Societies (501(c)(10)) 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' AssociationsLocal Employees' Associations (501(c)(4)) Voluntary Employees' Beneficiary Associations (501(c)(9)) Supplemental Unemployment Benefit Trusts (501(c)(17)) 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like OrganizationsMembership. How to file late tax returns Losses and expenses. How to file late tax returns Distributions of proceeds. How to file late tax returns The 85% Requirement Local Life Insurance Associations Mutual or Cooperative Associations 501(c)(13) - Cemetery CompaniesBuying cemetery property. How to file late tax returns Perpetual care organization. How to file late tax returns Care of individual plots. How to file late tax returns 501(c)(14) - Credit Unions and Other Mutual Financial OrganizationsState-Chartered Credit Unions Other Mutual Financial Organizations 501(c)(19) - Veterans' Organizations 501(c)(20) - Group Legal Services Plan Organizations 501(c)(21) - Black Lung Benefit TrustsExcise taxes. How to file late tax returns 501(c)(2) - Title-Holding Corporations for Single Parent CorporationsExpenses. How to file late tax returns Waiver of payment of income. How to file late tax returns 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent CorporationsUnrelated Business Income 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations 501(c)(29) - CO-OP Health Insurance Issuers New Guidance for IRC 501(c)(29) Qualified Nonprofit Health Insurance Issuers General Requirements for Exemption under 501(c)(29) and Annual Filing Requirement Additional Guidance for Prospective 501(c)(29) Organizations Introduction This chapter contains specific information for certain organizations described in section 501(c), other than those organizations that are described in section 501(c)(3). How to file late tax returns Section 501(c)(3) organizations are covered in chapter 3 of this publication. How to file late tax returns The Table of Contents at the beginning of this publication, as well as the Organization Reference Chart, may help you locate at a glance the type of organization discussed in this chapter. How to file late tax returns 501(c)(4) - Civic Leagues and Social Welfare Organizations If your organization is not organized for profit and will be operated primarily to promote social welfare to benefit the community, you should file Form 1024 to apply for recognition of exemption from federal income tax under section 501(c)(4). How to file late tax returns The discussion that follows describes the information you must provide when applying. How to file late tax returns For application procedures, see chapter 1. How to file late tax returns To qualify for exemption under section 501(c)(4), the organization's net earnings must be devoted primarily to charitable, educational, or recreational purposes. How to file late tax returns In addition, no part of the organization's net earnings can inure to the benefit of any private shareholder or individual. How to file late tax returns If the organization provides an excess benefit to certain persons, an excise tax may be imposed. How to file late tax returns See Excise tax on excess benefit transactions , under Excess Benefit Transactions in chapter 5 for more information about this tax. How to file late tax returns Examples. How to file late tax returns   Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies. How to file late tax returns Nonprofit operation. How to file late tax returns   You must submit evidence that your organization is organized and will be operated on a nonprofit basis. How to file late tax returns However, such evidence, including the fact that your organization is organized under a state law relating to nonprofit corporations, will not in itself establish a social welfare purpose. How to file late tax returns Social welfare. How to file late tax returns   To establish that your organization is organized primarily to promote social welfare, you should submit evidence with your application showing that your organization will operate primarily to further (in some way) the common good and general welfare of the people of the community (such as by bringing about civic betterment and social improvements). How to file late tax returns   An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community. How to file late tax returns It therefore does not qualify as a section 501(c)(4) organization. How to file late tax returns Similarly, an organization formed to represent member-tenants of an apartment complex does not qualify, since its activities benefit the member-tenants and not all tenants in the community. How to file late tax returns However, an organization formed to promote the legal rights of all tenants in a particular community may qualify under section 501(c)(4) as a social welfare organization. How to file late tax returns Political activity. How to file late tax returns   Promoting social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. How to file late tax returns However, if you submit proof that your organization is organized primarily to promote social welfare, it can obtain exemption even if it participates legally in some political activity on behalf of or in opposition to candidates for public office. How to file late tax returns See the discussion in chapter 2 under Political Organization Income Tax Return . How to file late tax returns Social or recreational activity. How to file late tax returns   If social activities will be the primary purpose of your organization, you should not file an application for exemption as a social welfare organization but should file for exemption as a social club described in section 501(c)(7). How to file late tax returns Retirement benefit program. How to file late tax returns   An organization established by its members that has as its primary activity providing supplemental retirement benefits to its members or death benefits to their beneficiaries does not qualify as an exempt social welfare organization. How to file late tax returns It may qualify under another paragraph of section 501(c) depending on all the facts. How to file late tax returns   However, a nonprofit association that is established, maintained, and funded by a local government to provide the only retirement benefits to a class of employees may qualify as a social welfare organization under section 501(c)(4). How to file late tax returns Tax treatment of donations. How to file late tax returns   Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes. How to file late tax returns Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. How to file late tax returns They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business. How to file late tax returns However, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. How to file late tax returns for more information. How to file late tax returns For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization at IRS. How to file late tax returns gov. How to file late tax returns Specific Organizations The following information should be contained in the application form and accompanying statements of certain types of civic leagues or social welfare organizations. How to file late tax returns Volunteer fire companies. How to file late tax returns   If your organization wishes to obtain exemption as a volunteer fire company or similar organization, you should submit evidence that its members are actively engaged in fire fighting and similar disaster assistance, whether it actually owns the fire fighting equipment, and whether it provides any assistance for its members, such as death and medical benefits in case of injury to them. How to file late tax returns   If your organization does not have an independent social purpose, such as providing recreational facilities for members, it may be exempt under section 501(c)(3). How to file late tax returns In this event, your organization should file Form 1023. How to file late tax returns Homeowners' associations. How to file late tax returns   A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development should show that it is operated for the benefit of all the residents of the community. How to file late tax returns The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. How to file late tax returns Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. How to file late tax returns Even if an area represented by an association is not a community, the association can still qualify for exemption if its activities benefit a community. How to file late tax returns   The association should submit evidence that areas such as roadways and park land that it owns and maintains are open to the general public and not just its own members. How to file late tax returns It also must show that it does not engage in exterior maintenance of private homes. How to file late tax returns   A homeowners' association that is not exempt under section 501(c)(4) and that is a condominium management association, a residential real estate management association, or a timeshare association generally can elect under the provisions of section 528 to receive certain tax benefits that, in effect, permit it to exclude its exempt function income from its gross income. How to file late tax returns Other organizations. How to file late tax returns   Other nonprofit organizations that qualify as social welfare organizations include: An organization operating an airport that is on land owned by a local government, which supervises the airport's operation, and that serves the general public in an area with no other airport, A community association that works to improve public services, housing, and residential parking; publishes a free community newspaper; sponsors a community sports league, holiday programs, and meetings; and contracts with a private security service to patrol the community, A community association devoted to preserving the community's traditions, architecture, and appearance by representing it before the local legislature and administrative agencies in zoning, traffic, and parking matters, An organization that tries to encourage industrial development and relieve unemployment in an area by making loans to businesses so they will relocate to the area, and An organization that holds an annual festival of regional customs and traditions. How to file late tax returns 501(c)(5) - Labor, Agricultural and Horticultural Organizations If you are a member of an organization that wants to obtain recognition of exemption from federal income tax as a labor, agricultural, or horticultural organization, you should submit an application on Form 1024. How to file late tax returns You must indicate in your application for exemption and accompanying statements that no part of the organization's net earnings will inure to the benefit of any member. How to file late tax returns In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. How to file late tax returns Submit any additional information that may be required, as described in this section. How to file late tax returns Tax treatment of donations. How to file late tax returns   Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor's federal income tax return. How to file late tax returns However, such payments may be deductible as business expenses if they are ordinary and necessary in the conduct of the taxpayer's trade or business. How to file late tax returns For more information about certain limits affecting the deductibility of these business expenses, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. How to file late tax returns Labor Organizations A labor organization is an association of workers who have combined to protect and promote the interests of the members by bargaining collectively with their employers to secure better working conditions. How to file late tax returns To show that your organization has the purpose of a labor organization, you should include in the articles of organization or accompanying statements (submitted with your exemption application) information establishing that the organization is organized to better the conditions of workers, improve the grade of their products, and develop a higher degree of efficiency in their respective occupations. How to file late tax returns In addition, no net earnings of the organization can inure to the benefit of any member. How to file late tax returns Composition of membership. How to file late tax returns   While a labor organization generally is composed of employees or representatives of the employees (in the form of collective bargaining agents) and similar employee groups, evidence that an organization's membership consists mainly of workers does not in itself indicate an exempt purpose. How to file late tax returns You must show in your application that your organization has the purposes described in the preceding paragraph. How to file late tax returns These purposes can be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization. How to file late tax returns Benefits to members. How to file late tax returns   The payment by a labor organization of death, sick, accident, and similar benefits to its individual members with funds contributed by its members, if made under a plan to better the conditions of the members, does not preclude exemption as a labor organization. How to file late tax returns However, an organization does not qualify for exemption as a labor organization if it has no authority to represent members in job-related matters, even if it provides weekly income to its members in the event of a lawful strike by the members' union, in return for an annual payment by the member. How to file late tax returns   For more information on labor organizations, see Life Cycle of a Labor Organization at IRS. How to file late tax returns gov. How to file late tax returns Agricultural and Horticultural Organizations Agricultural and horticultural organizations are connected with raising livestock, forestry, cultivating land, raising and harvesting crops or aquatic resources, cultivating useful or ornamental plants, and similar pursuits. How to file late tax returns For the purpose of these provisions, aquatic resources include only animal or vegetable life, but not mineral resources. How to file late tax returns The term harvesting, in this case, includes fishing and related pursuits. How to file late tax returns Agricultural organizations can be quasi-public in character and are often designed to encourage the development of better agricultural and horticultural products through a system of awards, using income from entry fees, gate receipts, and donations to meet the necessary expenses of upkeep and operation. How to file late tax returns When the activities are directed toward the improvement of marketing or other business conditions in one or more lines of business, rather than the improvement of production techniques or the betterment of the conditions of persons engaged in agriculture, the organization must qualify for exemption as a business league, board of trade, or other organization, as discussed next in the section on 501(c)(6) organizations. How to file late tax returns The primary purpose of exempt agricultural and horticultural organizations must be to better the conditions of those engaged in agriculture or horticulture, develop more efficiency in agriculture or horticulture, or improve the products. How to file late tax returns The following list contains some examples of activities that show an agricultural or horticultural purpose. How to file late tax returns Promoting various cooperative agricultural, horticultural, and civic activities among rural residents by a state, farm, or home bureau. How to file late tax returns Exhibiting livestock, farm products, and other characteristic features of agriculture and horticulture. How to file late tax returns Testing soil for members and nonmembers of the farm bureau on a cost basis, the results of the tests and other recommendations being furnished to the community members to educate them in soil treatment. How to file late tax returns Guarding the purity of a specific breed of livestock. How to file late tax returns Encouraging improvements in the production of fish on privately owned fish farms. How to file late tax returns Negotiating with processors for the price to be paid to members for their crops. How to file late tax returns For more information on agricultural or horticultural organizations, see Life Cycle of an Agricultural or Horticultural Organization at IRS. How to file late tax returns gov. How to file late tax returns 501(c)(6) - Business Leagues, etc. How to file late tax returns If your association wants to apply for recognition of exemption from federal income tax as a nonprofit business league, chamber of commerce, real estate board, or board of trade, it should file Form 1024. How to file late tax returns For a discussion of the procedure to follow, see chapter 1. How to file late tax returns Your organization must indicate in its application form and attached statements that no part of its net earnings will inure to the benefit of any private shareholder or individual and that it is not organized for profit or organized to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining). How to file late tax returns In addition, your organization must be primarily engaged in activities or functions that are the basis for its exemption. How to file late tax returns It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose. How to file late tax returns A business league, in general, is an association of persons having some common business interest, the purpose of which is to promote that common interest and not to engage in a regular business of a kind ordinarily carried on for profit. How to file late tax returns Trade associations and professional associations are considered business leagues. How to file late tax returns Chamber of commerce. How to file late tax returns   A chamber of commerce usually is composed of the merchants and traders of a city. How to file late tax returns Board of trade. How to file late tax returns   A board of trade often consists of persons engaged in similar lines of business. How to file late tax returns For example, a nonprofit organization formed to regulate the sale of a specified agricultural commodity to assure equal treatment of producers, warehouse workers, and buyers is a board of trade. How to file late tax returns   Chambers of commerce and boards of trade usually promote the common economic interests of all the commercial enterprises in a given trade community. How to file late tax returns Real estate board. How to file late tax returns   A real estate board consists of members interested in improving the business conditions in the real estate field. How to file late tax returns It is not organized for profit and no part of the net earnings inures to the benefit of any private shareholder or individual. How to file late tax returns Professional football leagues. How to file late tax returns   The Internal Revenue Code specifically defines professional football leagues as exempt organizations under section 501(c)(6). How to file late tax returns They are exempt whether or not they administer a pension fund for football players. How to file late tax returns General purpose. How to file late tax returns   You must indicate in the material submitted with your application that your organization will be devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. How to file late tax returns It must be shown that the conditions of a particular trade or the interests of the community will be advanced. How to file late tax returns Merely indicating the name of the organization or the object of the local statute under which it is created is not enough to demonstrate the required general purpose. How to file late tax returns Line of business. How to file late tax returns   This term generally refers either to an entire industry or to all components of an industry within a geographic area. How to file late tax returns It does not include a group composed of businesses that market a particular brand within an industry. How to file late tax returns Common business interest. How to file late tax returns   A common business interest of all members of the organization must be established by the application documents. How to file late tax returns Examples. How to file late tax returns   Activities that would tend to illustrate a common business interest are: Promotion of higher business standards and better business methods and encouragement of uniformity and cooperation by a retail merchants association, Education of the public in the use of credit, Establishment of uniform casualty rates and compilation of statistical information by an insurance rating bureau operated by casualty insurance companies, Establishment and maintenance of the integrity of a local commercial market, Operation of a trade publication primarily intended to benefit an entire industry, and Encouragement of the use of goods and services of an entire industry (such as a lawyer referral service whose main purpose is to introduce individuals to the use of the legal profession in the hope that they will enter into lawyer-client relationships on a paying basis as a result). How to file late tax returns Improvement of business conditions. How to file late tax returns   Generally, this must be shown to be the purpose of the organization. How to file late tax returns This is not established by evidence of particular services that provide a convenience or economy to individual members in their businesses, such as advertising that carries the name of members, interest-free loans, assigning exclusive franchise areas, operation of a real estate multiple listing system, or operation of a credit reporting agency. How to file late tax returns Stock or commodity exchange. How to file late tax returns   A stock or commodity exchange is not a business league, chamber of commerce, real estate board, or board of trade and is not exempt under section 501(c)(6). How to file late tax returns Legislative activity. How to file late tax returns   An organization that is exempt under section 501(c)(6) can work for the enactment of laws to advance the common business interests of the organization's members. How to file late tax returns Deduction not allowed for dues used for political or legislative activities. How to file late tax returns   A taxpayer cannot deduct the part of dues or other payments to a business league, trade association, labor union, or similar organization that is reported to the taxpayer by the organization as having been used for any of the following activities. How to file late tax returns Influencing legislation. How to file late tax returns Participating or intervening in a political campaign for, or against, any candidate for public office. How to file late tax returns Trying to influence the general public, or part of the general public, with respect to elections, legislative matters, or referendums (also known as grass roots lobbying). How to file late tax returns Communicating directly with certain executive branch officials to try to influence their official actions or positions. How to file late tax returns See Dues Used for Lobbying or Political Activities under Required Disclosures in chapter 2 for more information. How to file late tax returns Exception for local legislation. How to file late tax returns   Members can deduct dues (or assessments) to an organization that are for expenses of: Appearing before, submitting statements to, or sending communications to members of a local council or similar governing body with respect to legislation or proposed legislation of direct interest to the member, or Communicating information between the member and the organization with respect to local legislation or proposed legislation of direct interest to the organization or the member. How to file late tax returns Legislation or proposed legislation is of direct interest to a taxpayer if it will, or can reasonably be expected to, affect the taxpayer's trade or business. How to file late tax returns De minimis exception. How to file late tax returns   In-house expenditures of $2,000 or less for the year for activities (1) – (4) listed earlier will not prevent a deduction for dues if the dues meet all other tests to be deductible as a business expense. How to file late tax returns Grass roots lobbying. How to file late tax returns   A tax-exempt trade association, labor union, or similar organization is considered to be engaging in grass roots lobbying if it contacts prospective members or calls upon its own members to contact their employees and customers for the purpose of urging such persons to communicate with their elected state or Congressional representatives to support the promotion, defeat, or repeal of legislation that is of direct interest to the organization. How to file late tax returns Any dues or assessments directly related to such activities are not deductible by the taxpayer, since the individuals being contacted, who are not members of the organization, are a segment of the general public. How to file late tax returns Tax treatment of donations. How to file late tax returns   Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. How to file late tax returns They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business. How to file late tax returns   For more information on business leagues, see Life Cycle of a Business League (Trade Association) on IRS. How to file late tax returns gov. How to file late tax returns 501(c)(7) - Social and Recreation Clubs If your club is organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities are for these purposes, it should file Form 1024 to apply for recognition of exemption from federal income tax. How to file late tax returns In applying for recognition of exemption, you should submit the information described in this section. How to file late tax returns Also see chapter 1 for the procedures to follow. How to file late tax returns Typical organizations that should file for recognition of exemption as social clubs include: College alumni associations that are not described in chapter 3 under Alumni association , College fraternities or sororities operating chapter houses for students, Country clubs, Amateur hunting, fishing, tennis, swimming, and other sport clubs, Dinner clubs that provide a meeting place, library, and dining room for members, Hobby clubs, Garden clubs, and Variety clubs. How to file late tax returns Discrimination prohibited. How to file late tax returns   Your organization will not be recognized as tax exempt if its charter, bylaws, or other governing instrument, or any written policy statement provides for discrimination against any person on the basis of race, color, or religion. How to file late tax returns   However, a club that in good faith limits its membership to the members of a particular religion to further the teachings or principles of that religion and not to exclude individuals of a particular race or color will not be considered as discriminating on the basis of religion. How to file late tax returns Also, the restriction on religious discrimination does not apply to a club that is an auxiliary of a fraternal beneficiary society (discussed later) if that society is described in section 501(c)(8) and exempt from tax under section 501(a) and limits its membership to the members of a particular religion. How to file late tax returns Private benefit prohibited. How to file late tax returns   No part of the organization's net earnings can inure to the benefit of any person having a personal and private interest in the activities of the organization. How to file late tax returns For purposes of this requirement, it is not necessary that net earnings be actually distributed. How to file late tax returns Even undistributed earnings can benefit members. How to file late tax returns Examples of this include a decrease in membership dues or an increase in the services the club provides to its members without a corresponding increase in dues or other fees paid for club support. How to file late tax returns However, fixed-fee payments to members who bring new members into the club are not an inurement of the club's net earnings, if the payments are reasonable compensation for performance of a necessary administrative service. How to file late tax returns Purposes. How to file late tax returns   To show that your organization possesses the characteristics of a club within the meaning of the exemption law, you should submit evidence with your application that personal contact, commingling, and fellowship exist among members. How to file late tax returns You must show that members are bound together by a common objective of pleasure, recreation, and other nonprofitable purposes. How to file late tax returns   Fellowship need not be present between each member and every other member of a club if it is a material part in the life of the organization. How to file late tax returns A statewide or nationwide organization that is made up of individual members, but is divided into local groups, satisfies this requirement if fellowship is a material part of the life of each local group. How to file late tax returns   The term other nonprofitable purposes means other purposes similar to pleasure and recreation. How to file late tax returns For example, a club that, in addition to its social activities, has a plan for the payment of sick and death benefits is not operating exclusively for pleasure, recreation, and other nonprofitable purposes. How to file late tax returns Limited membership. How to file late tax returns   The membership in a social club must be limited. How to file late tax returns To show that your organization has a purpose that would characterize it as a club, you should submit evidence with your application that there are limits on admission to membership consistent with the character of the club. How to file late tax returns   A social club that issues corporate membership is dealing with the general public in the form of the corporation's employees. How to file late tax returns Corporate members of a club are not the kind of members contemplated by the law. How to file late tax returns Gross receipts from these members would be a factor in determining whether the club qualifies as a social club. How to file late tax returns See Gross receipts from nonmembership sources , later. How to file late tax returns Bona fide individual memberships paid for by a corporation would not have an effect on the gross receipts source. How to file late tax returns   The fact that a social club may have an associate (nonvoting) class of membership will not be, in and of itself, a cause for nonrecognition of exemption. How to file late tax returns However, if one membership class pays substantially lower dues and fees than another membership class, although both classes enjoy the same rights and privileges in using the club facilities, there may be an inurement of income to the benefited class, resulting in a denial of the club's exemption. How to file late tax returns Support. How to file late tax returns   In general, your club should be supported solely by membership fees, dues, and assessments. How to file late tax returns However, if otherwise entitled to exemption, your club will not be disqualified because it raises revenue from members through the use of club facilities or in connection with club activities. How to file late tax returns Business activities. How to file late tax returns   If your club will engage in business, such as selling real estate, timber, or other products or services, it generally will be denied exemption. How to file late tax returns However, evidence submitted with your application form that your organization will provide meals, refreshments, or services related to its exempt purposes only to its own members or their dependents or guests will not cause denial of exemption. How to file late tax returns Facilities open to public. How to file late tax returns   Evidence that your club's facilities will be open to the general public (persons other than members or their dependents or guests) may cause denial of exemption. How to file late tax returns This does not mean, however, that any dealing with outsiders will automatically deprive a club of exemption. How to file late tax returns Gross receipts from nonmembership sources. How to file late tax returns   A section 501(c)(7) organization can receive up to 35% of its gross receipts, including investment income, from sources outside of its membership without losing its tax-exempt status. How to file late tax returns Income from nontraditional business activity with members is not exempt function income, and thus is included as income from sources outside of the membership. How to file late tax returns Of the 35% gross receipts listed above, up to 15% of the gross receipts can be derived from the use of the club's facilities or services by the general public. How to file late tax returns If an organization has outside income that is more than these limits, all the facts and circumstances will be taken into account in determining whether the organization qualifies for exempt status. How to file late tax returns Gross receipts. How to file late tax returns   Gross receipts, for this purpose, are receipts from the normal and usual (traditionally conducted) activities of the club. How to file late tax returns These receipts include charges, admissions, membership fees, dues, assessments, investment income, and normal recurring capital gains on investments. How to file late tax returns Receipts do not include initiation fees and capital contributions. How to file late tax returns Unusual amounts of income, such as from the sale of a clubhouse or similar facility, are not included in gross receipts or in figuring the percentage limits. How to file late tax returns Nontraditional activities. How to file late tax returns   Activities conducted by a social club need to further its exempt purposes. How to file late tax returns Traditional business activities are those that further a social club's exempt purposes. How to file late tax returns Nontraditional business activities do not further the exempt purposes of a social club even if conducted solely on a membership basis. How to file late tax returns Nontraditional business activities are prohibited (subject to an insubstantial, trivial, and nonrecurrent test) for businesses conducted with both members and nonmembers. How to file late tax returns Examples of nontraditional business activities include sale of package liquor, take-out food, and long-term room rental. How to file late tax returns Fraternity foundations. How to file late tax returns   If your organization is a foundation formed for the exclusive purpose of acquiring and leasing a chapter house to a local fraternity chapter or sorority chapter maintained at an educational institution and does not engage in any social or recreational activities, it may be a title holding corporation (discussed later under section 501(c)(2) organizations and under section 501(c)(25) organizations) rather than a social club. How to file late tax returns Tax treatment of donations. How to file late tax returns   Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return. How to file late tax returns 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies This section describes the information to be provided upon application for recognition of exemption by two types of fraternal societies: beneficiary and domestic. How to file late tax returns The major distinction is that fraternal beneficiary societies provide for the payment of life, sick, accident, or other benefits to their members or their dependents, while domestic fraternal societies do not provide these benefits but rather devote their earnings to fraternal, religious, charitable, etc. How to file late tax returns , purposes. How to file late tax returns The procedures to follow in applying for recognition of exemption are described in chapter 1. How to file late tax returns If your organization is controlled by a central organization, you should check with your controlling organization to determine whether your unit has been included in a group exemption letter or can be added. How to file late tax returns If so, your organization need not apply for individual recognition of exemption. How to file late tax returns For more information, see Group Exemption Letter in chapter 1 of this publication. How to file late tax returns Tax treatment of donations. How to file late tax returns   Donations by an individual to a domestic fraternal beneficiary society or a domestic fraternal society operating under the lodge system are deductible as charitable contributions only if used exclusively for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. How to file late tax returns Fraternal Beneficiary Societies (501(c)(8)) A fraternal beneficiary society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. How to file late tax returns The application and accompanying statements should establish that the organization: Is a fraternal organization, Operates under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system, and Provides for the payment of life, sick, accident, or other benefits to the members of the society, order, or association or their dependents. How to file late tax returns Lodge system. How to file late tax returns   Operating under the lodge system means carrying on activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called lodges, chapters, or the like. How to file late tax returns Payment of benefits. How to file late tax returns   It is not essential that every member be covered by the society's program of sick, accident, or death benefits. How to file late tax returns An organization can qualify for exemption if most of its members are eligible for benefits, and the benefits are paid from contributions or dues paid by those members. How to file late tax returns   The benefits must be limited to members and their dependents. How to file late tax returns If members will have the ability to confer benefits to other than themselves and their dependents, exemption will not be recognized. How to file late tax returns Whole-life insurance. How to file late tax returns   Whole-life insurance constitutes a life benefit under section 501(c)(8) even though the policy may contain investment features such as a cash surrender value or a policy loan. How to file late tax returns Reinsurance pool. How to file late tax returns   Payments by a fraternal beneficiary society into a state-sponsored reinsurance pool that protects participating insurers against excessive losses on major medical health and accident insurance will not preclude exemption as a fraternal beneficiary society. How to file late tax returns Domestic Fraternal Societies (501(c)(10)) A domestic fraternal society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. How to file late tax returns The application and accompanying statements should establish that the organization: Is a domestic fraternal organization organized in the U. How to file late tax returns S. How to file late tax returns , Operates under the lodge system, Devotes its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and Does not provide for the payment of life, sick, accident, or other benefits to its members. How to file late tax returns The organization can arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status. How to file late tax returns 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations This section describes the information to be provided upon application for recognition of exemption by the following types of employees' associations: A voluntary employees' beneficiary association (including federal employees' associations) organized to pay life, sick, accident, and similar benefits to members or their dependents, or designated beneficiaries, if no part of the net earnings of the association inures to the benefit of any private shareholder or individual, and A supplemental unemployment benefit trust whose primary purpose is providing for payment of supplemental unemployment benefits. How to file late tax returns Both the application form to file and the information to provide are discussed later under the section that describes your employee association. How to file late tax returns Chapter 1 describes the procedures to follow in applying for exemption. How to file late tax returns Tax treatment of donations. How to file late tax returns   Donations to these organizations are not deductible as charitable contributions on the donor's federal income tax return. How to file late tax returns Local Employees' Associations (501(c)(4)) A local association of employees whose membership is limited to employees of a designated person or persons in a particular municipality, and whose income will be devoted exclusively to charitable, educational, or recreational purposes. How to file late tax returns A local employees' association must apply for recognition of exemption by filing Form 1024. How to file late tax returns The organization must submit evidence that: It is of a purely local character, Its membership is limited to employees of a designated person or persons in a particular locality, and Its net earnings will be devoted exclusively to charitable, educational, or recreational purposes. How to file late tax returns A local association of employees that has established a system of paying retirement or death benefits, or both, to its members will not qualify for exemption since the payment of these benefits is not considered as being for charitable, educational, or recreational purposes. How to file late tax returns Similarly, a local association of employees that is operated primarily as a cooperative buying service for its members in order to obtain discount prices on merchandise, services, and activities does not qualify for exemption. How to file late tax returns Voluntary Employees' Beneficiary Associations (501(c)(9)) An application for recognition of exemption as a voluntary employees' beneficiary association must be filed on Form 1024. How to file late tax returns The material submitted with the application must show that your organization: Is a voluntary association of employees, Will provide for payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries and substantially all of its operations are for this purpose, and Will not allow any of its net earnings to inure to the benefit of any private individual or shareholder except in the form of scheduled benefit payments. How to file late tax returns To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. How to file late tax returns Note. How to file late tax returns Under section 4976, the reversion of funds from a section 501(c)(9) organization to the employer who created the beneficiary association may subject the employer to a 100% penalty excise tax on the amount of the reversion. How to file late tax returns Notice requirement. How to file late tax returns   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. How to file late tax returns The organization gives notice by filing Form 1024. How to file late tax returns If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before notice is given. How to file late tax returns An extension of time for filing the notice can be granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . How to file late tax returns Membership. How to file late tax returns   Membership of a section 501(c)(9) organization must consist of individuals who are employees and have an employment-related common bond. How to file late tax returns This common bond can be a common employer (or affiliated employers), coverage under one or more collective bargaining agreements, membership in a labor union, or membership in one or more locals of a national or international labor union. How to file late tax returns   The membership of an association can include some individuals who are not employees, provided they have an employment-related bond with the employee-members. How to file late tax returns For example, the owner of a business whose employees are members of the association can be a member. How to file late tax returns An association will be considered composed of employees if 90% of its total membership on one day of each quarter of its tax year consists of employees. How to file late tax returns Employees. How to file late tax returns   Employees include individuals who became entitled to membership because they are or were employees. How to file late tax returns For example, an individual will qualify as an employee even though the individual is on a leave of absence or has been terminated due to retirement, disability, or layoff. How to file late tax returns   Generally, membership is voluntary if an affirmative act is required on the part of an employee to become a member. How to file late tax returns Conversely, membership is involuntary if the designation as a member is due to employee status. How to file late tax returns However, an association will be considered voluntary if employees are required to be members of the organization as a condition of their employment and they do not incur a detriment (such as a payroll deduction) as a result of their membership. How to file late tax returns An employer has not imposed involuntary membership on the employee if membership is required as the result of a collective bargaining agreement or as an incident of membership in a labor organization. How to file late tax returns Payment of benefits. How to file late tax returns   The information submitted with your application must show that your organization will pay life, sick, accident, supplemental unemployment, or other similar benefits. How to file late tax returns The benefits can be provided directly by your association or indirectly by your association through the payments of premiums to an insurance company (or fees to a medical clinic). How to file late tax returns Benefits can be in the form of medical, clinical, or hospital services, transportation furnished for medical care, or money payments. How to file late tax returns Nondiscrimination requirements. How to file late tax returns   An organization that is part of a plan will not be exempt unless the plan meets certain nondiscrimination requirements. How to file late tax returns However, if the organization is part of a plan that is a collective bargaining agreement that was the subject of good faith bargaining between employee organizations and employers, the plan need not meet these requirements for the organization to qualify as tax exempt. How to file late tax returns   A plan meets the nondiscrimination requirements only if both of the following statements are true. How to file late tax returns Each class of benefits under the plan is provided under a classification of employees that is set forth in the plan and does not discriminate in favor of employees who are highly compensated individuals. How to file late tax returns The benefits provided under each class of benefits do not discriminate in favor of highly compensated individuals. How to file late tax returns A life insurance, disability, severance pay, or supplemental unemployment compensation benefit does not discriminate in favor of highly compensated individuals merely because the benefits available bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of employees covered by the plan. How to file late tax returns   For purposes of determining whether a plan meets the nondiscrimination requirements, the employer can elect to exclude all disability or severance payments payable to individuals who are in pay status as of January 1, 1985. How to file late tax returns This will not apply to any increase in such payment by any plan amendment adopted after June 22, 1984. How to file late tax returns   If a plan provides a benefit for which there is a nondiscrimination provision provided under Chapter 1 of the Internal Revenue Code as a condition of that benefit being excluded from gross income, these nondiscrimination requirements do not apply. How to file late tax returns The benefit will be considered nondiscriminatory only if it meets the nondiscrimination provision of the applicable Code section. How to file late tax returns For example, benefits provided under a medical reimbursement plan would meet the nondiscrimination requirements for an association, if the benefits meet the nondiscrimination requirements of section 105(h)(3) and 105(h)(4). How to file late tax returns Excluded employees. How to file late tax returns   Certain employees who are not covered by a plan can be excluded from consideration in applying these requirements. How to file late tax returns These include employees: Who have not completed 3 years of service, Who have not attained age 21, Who are seasonal or less than half-time employees, Who are not in the plan and who are included in a unit of employees covered by a collective bargaining agreement if the class of benefits involved was the subject of good faith bargaining, or Who are nonresident aliens and who receive no earned income from the employer that has United States source income. How to file late tax returns Highly compensated individual. How to file late tax returns   A highly compensated individual is one who: Owned 5 percent or more of the employer at any time during the current year or the preceding year, Received more than $115,000 in compensation from the employer for the preceding year (the amount is annualized for inflation. How to file late tax returns Go to IRS. How to file late tax returns gov, and search “Pension Plan Limitation” for the year), and Was among the top 20% of employees by compensation for the preceding year. How to file late tax returns However, the employer can choose not to have (3) apply. How to file late tax returns Aggregation rules. How to file late tax returns   The employer can choose to treat two or more plans as one plan for purposes of meeting the nondiscrimination requirements. How to file late tax returns Employees of controlled groups of corporations, trades, or businesses under common control, or members of an affiliated service group, are treated as employees of a single employer. How to file late tax returns Leased employees are treated as employees of the recipient. How to file late tax returns One employee. How to file late tax returns   A trust created to provide benefits to one employee will not qualify as a voluntary employees' beneficiary association under section 501(c)(9). How to file late tax returns Supplemental Unemployment Benefit Trusts (501(c)(17)) A trust or trusts forming part of a written plan (established and maintained by an employer, his or her employees, or both) providing solely for the payment of supplemental unemployment compensation benefits must file the application for recognition of exemption on Form 1024. How to file late tax returns The trust must be a valid, existing trust under local law and must be evidenced by an executed document. How to file late tax returns A conformed copy of the plan of which the trust is a part should be attached to the application. How to file late tax returns To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. How to file late tax returns Note. How to file late tax returns Under section 4976, the reversion of funds from a section 501(c)(17) organization to the employer who created the supplemental unemployment benefit trust may subject the employer to a 100% penalty excise tax on the amount of the reversion. How to file late tax returns Notice requirement. How to file late tax returns   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. How to file late tax returns The organization gives notice by filing Form 1024. How to file late tax returns If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before such notice is given. How to file late tax returns An extension of time for filing the notice is granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . How to file late tax returns Types of payments. How to file late tax returns   You must show that the supplemental unemployment compensation benefits will be benefits paid to an employee because of the employee's involuntary separation from employment (whether or not the separation is temporary) resulting directly from a reduction-in-force, discontinuance of a plant or operation, or other similar conditions. How to file late tax returns In addition, sickness and accident benefits (but not vacation, retirement, or death benefits) may be included in the plan if these are subordinate to the unemployment compensation benefits. How to file late tax returns Diversion of funds. How to file late tax returns   It must be impossible under the plan (at any time before the satisfaction of all liabilities with respect to employees under the plan) to use or to divert any of the corpus or income of the trust to any purpose other than the payment of supplemental unemployment compensation benefits (or sickness or accident benefits to the extent just explained). How to file late tax returns Discrimination in benefits. How to file late tax returns   Neither the terms of the plan nor the actual payment of benefits can be discriminatory in favor of the company's officers, stockholders, supervisors, or highly paid employees. How to file late tax returns However, a plan is not discriminatory merely because benefits bear a uniform relationship to compensation or the rate of compensation. How to file late tax returns Prohibited transactions and exemption. How to file late tax returns   If your organization is a supplemental unemployment benefit trust and has received a denial of exemption because it engaged in a prohibited transaction, as defined by section 503(b), it can file a claim for exemption in any tax year following the tax year in which the notice of denial was issued. How to file late tax returns It must file the claim on Form 1024. How to file late tax returns The organization must include a written declaration that it will not knowingly again engage in a prohibited transaction. How to file late tax returns An authorized principal officer of your organization must make this declaration under the penalties of perjury. How to file late tax returns   If your organization has satisfied all requirements as a supplemental unemployment benefit trust described in section 501(c)(17), it will be notified in writing that it has been recognized as exempt. How to file late tax returns However, the organization will be exempt only for those tax years after the tax year in which the claim for exemption (Form 1024) is filed. How to file late tax returns Tax year in this case means the established annual accounting period of the organization or, if the organization has not established an annual accounting period, the calendar year. How to file late tax returns For more information about the requirements for reestablishing an exemption previously denied, contact the IRS. How to file late tax returns 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like Organizations Each of the following organizations apply for recognition of exemption from federal income tax by filing Form 1024. How to file late tax returns Benevolent life insurance associations of a purely local character and like organizations. How to file late tax returns Mutual ditch or irrigation companies and like organizations. How to file late tax returns Mutual or cooperative telephone companies and like organizations. How to file late tax returns A like organization is an organization that performs a service comparable to that performed by any one of the above organizations. How to file late tax returns The information to be provided upon application by each of these organizations is described in this section. How to file late tax returns For information as to the procedures to follow in applying for exemption, see chapter 1. How to file late tax returns General requirements. How to file late tax returns   These organizations must use their income solely to cover losses and expenses, with any excess being returned to members or retained to cover future losses and expenses. How to file late tax returns They must collect at least 85% of their income from members for the sole purpose of meeting losses and expenses. How to file late tax returns Mutual character. How to file late tax returns   These organizations, other than benevolent life insurance associations, must be organized and operated on a mutual or cooperative basis. How to file late tax returns They are associations of persons or organizations, or both, banded together to provide themselves a mutually desirable service approximately at cost and on a mutual basis. How to file late tax returns To maintain the mutual characteristic of democratic ownership and control, they must be so organized and operated that their members have the right to choose the management, to receive services at cost, to receive a return of any excess of payments over losses and expenses, and to share in any assets upon dissolution. How to file late tax returns   The rights and interests of members in the annual savings of the organization must be determined in proportion to their business with the organization. How to file late tax returns Upon dissolution, gains from the sale of appreciated assets must be distributed to all persons who were members during the period the assets were owned by the organization in proportion to the amount of business done during that period. How to file late tax returns The bylaws must not provide for forfeiture of a member's rights and interest upon withdrawal or termination. How to file late tax returns Membership. How to file late tax returns   Membership of a mutual organization consists of those who join the organization to obtain its services, and have a voice in its management. How to file late tax returns In a stock company, the stockholders are members. How to file late tax returns However, a mutual life insurance organization cannot have policyholders other than its members. How to file late tax returns Losses and expenses. How to file late tax returns   In furnishing services substantially at cost, an organization must use its income solely for paying losses and expenses. How to file late tax returns Any excess income not retained in reasonable reserves for future losses and expenses belongs to members in proportion to their patronage or business done with the organization. How to file late tax returns If such patronage refunds are retained in reasonable amounts for purposes of expanding and improving facilities, retiring capital indebtedness, acquiring other assets, and unexpected expenses, the organization must maintain records sufficient to reflect the equity of each member in the assets acquired with the funds. How to file late tax returns Distributions of proceeds. How to file late tax returns   The cooperative may distribute the unexpended balance of collections or assessments remaining on hand at the end of the year to members or patrons prorated on the basis of their patronage or business done with the cooperative. How to file late tax returns Such distribution represents a refund in the costs of services rendered to the member. How to file late tax returns The 85% Requirement All of the organizations listed above must submit evidence with their application that they receive 85% or more of their gross income from their members for the sole purpose of meeting losses and expenses. How to file late tax returns Nevertheless, certain items of income are excluded from the computation of the 85% requirement if the organization is a mutual or cooperative telephone or electric company. How to file late tax returns Mutual or cooperative telephone company. How to file late tax returns   A mutual or cooperative telephone company will exclude from the computation of the 85% requirement any income received or accrued from: A nonmember telephone company for the performance of communication services involving the completion of long distance calls to, from, or between members of the mutual or cooperative telephone company, Qualified pole rentals, The sale of display listings in a directory furnished to its members, or The prepayment of a loan created in 1987, 1988, or 1989, under section 306A, 306B, or 311 of the Rural Electrification Act of 1936. How to file late tax returns Mutual or cooperative electric company. How to file late tax returns   A mutual or cooperative electric company will exclude from the computation of the 85% requirement any income received or accrued from: Qualified pole rentals, Any provision or sale of electric energy transmission services or ancillary service if the services are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by the Federal Energy Regulatory Commission (FERC) or under an independent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member), The provision or sale of electric energy distribution services or ancillary services if the services are provided on a nondiscriminatory open-access basis to distribute electric energy not owned by the mutual or electric cooperative company: To end-users who are served by distribution facilities not owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), or Generated by a generation facility not owned or leased by the company or any of its members and which is directly connected to distribution facilities owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), Any nuclear decommissioning transaction, or Any asset exchange or conversion transaction. How to file late tax returns   An electric cooperative's sale of excess fuel at cost in the year of purchase is not income for purposes of determining compliance with the 85% requirement. How to file late tax returns Qualified pole rental. How to file late tax returns   The term qualified pole rental means any rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that are used by the company in providing telephone or electric services to its members, and Pursuant to the rental to support one or more wires (in addition to wires described in (1)) for use in connection with the transmission by wire of electricity or of telephone or other communications. How to file late tax returns   The term rental, for this purpose, includes any sale of the right to use the pole (or other structure). How to file late tax returns The 85% requirement is applied on the basis of an annual accounting period. How to file late tax returns Failure of an organization to meet the requirement in a particular year precludes exemption for that year, but has no effect upon exemption for years in which the 85% requirement is met. How to file late tax returns Gain from the sale or conversion of the organization's property is not considered an amount received from members in determining whether the organization's income consists of amounts collected from members. How to file late tax returns Because the 85% income test is based on gross income, capital losses cannot be used to reduce capital gains for purposes of this test. How to file late tax returns Example. How to file late tax returns   The books of an organization reflect the following for the calendar year. How to file late tax returns Collections from members $2,400 Short-term capital gains 600 Short-term capital losses 400 Other income None Gross income ($2,400 + $600 =$3000) 100% Collected from members ($2,400) 80%   Since amounts collected from members do not constitute at least 85% of gross income, the organization is not entitled to exemption from federal income tax for the year. How to file late tax returns   Voluntary contributions in the nature of gifts are not taken into account for purposes of the 85% computation. How to file late tax returns   Other tax-exempt income besides gifts is considered as income received from other than members in applying the 85% test. How to file late tax returns   If the 85% test is not met, your organization, if classifiable under this section, will not qualify for exemption as any other type of organization described in this publication. How to file late tax returns Tax treatment of donations. How to file late tax returns   Donations to an organization described in this section are not deductible as charitable contributions on the donor's federal income tax return. How to file late tax returns Local Life Insurance Associations A benevolent life insurance association or an organization seeking recognition of exemption on grounds of similarity to a benevolent life insurance association must submit evidence upon applying for recognition of exemption that it will be of a purely local character, that its excess funds will be refunded to members or retained in reasonable reserves to meet future losses and expenses, and that it meets the 85% income requirement. How to file late tax returns If an organization issues policies for stipulated cash premiums, or if it requires advance deposits to cover the cost of the insurance and maintains investments from which more than 15% of its income is derived, it will not be entitled to exemption. How to file late tax returns To establish that your organization is of a purely local character, it should show that its activities will be confined to a particular community, place, or district irrespective of political subdivisions. How to file late tax returns If the activities of an organization are limited only by the borders of a state, it cannot be purely local in character. How to file late tax returns A benevolent life insurance association that does not terminate membership when a member moves from the local area in which the association operates will qualify for exemption if it meets the other requirements. How to file late tax returns A copy of each type of policy issued by your organization should be included with the application for recognition of exemption. How to file late tax returns Organizations similar to local benevolent life insurance companies. How to file late tax returns   These organizations include those that in addition to paying death benefits also provide for the payment of sick, accident, or health benefits. How to file late tax returns However, an organization that pays only sick, accident, or health benefits, but not life insurance benefits, is not an organization similar to a benevolent life insurance association and should not apply for recognition of exemption as described in this section. How to file late tax returns Burial and funeral benefit insurance organization. How to file late tax returns   This type of organization can apply for recognition of exemption as an organization similar to a benevolent life insurance company if it establishes that the benefits are paid in cash and if it is not engaged directly in the manufacture of funeral supplies or the performance of funeral services. How to file late tax returns An organization that provides its benefits in the form of supplies and service is not a life insurance company. How to file late tax returns Such an organization can seek recognition of exemption from federal income tax, however, as a mutual insurance company other than life. How to file late tax returns Mutual or Cooperative Associations Mutual ditch or irrigation companies, mutual or cooperative telephone companies, and like organizations need not establish that they are of a purely local character. How to file late tax returns They can serve noncontiguous areas. How to file late tax returns Like organization. How to file late tax returns   A like organization is a cooperative or mutual organization that performs a service similar to mutual ditch, irrigation, telephone, or electric companies. How to file late tax returns Examples include the following: cooperatives that provide protection of river banks to prevent erosion, water and sewer services, cable television, satellite, television, cellular phone services, two-way radio service, or natural gas services. How to file late tax returns 501(c)(13) - Cemetery Companies If your organization wishes to obtain recognition of exemption from federal income tax as a cemetery company or a corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, it must file an application on Form 1024. How to file late tax returns For the procedure to follow to file an application, see Application, Approval, and Appeal Procedures in chapter 1. How to file late tax returns A nonprofit mutual cemetery company that seeks recognition of exemption should submit evidence with its application that it is owned and operated exclusively for the benefit of its lot owners who hold lots for bona fide burial purposes and not for purposes of resale. How to file late tax returns A mutual cemetery company that also engages in charitable activities, such as the burial of paupers, will be regarded as operating within this standard. How to file late tax returns The fact that a mutual cemetery company limits its membership to a particular class of individuals, such as members of a family, will not affect its status as mutual so long as all the other requirements of section 501(c)(13) are met. How to file late tax returns If your organization is a nonprofit corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, you should show that it is not permitted by its charter to engage in any business not necessarily incident to that purpose. How to file late tax returns Operating a mortuary is not permitted. How to file late tax returns However, selling monuments, markers, vaults, and flowers solely for use in the cemetery is permitted if the profits from these sales are used to maintain the cemetery as a whole. How to file late tax returns How income can be used. How to file late tax returns   You should show that your organization's earnings are or will be used only in one or more of the following ways. How to file late tax returns To pay the ordinary and necessary expenses of operating, maintaining, and improving the cemetery or crematorium. How to file late tax returns To buy cemetery property. How to file late tax returns To create a fund that will provide a source of income for the perpetual care of the cemetery or a reasonable reserve for any ordinary or necessary purpose. How to file late tax returns No part of the net earnings of your organization can inure to the benefit of any private shareholder or individual. How to file late tax returns Ordinary and necessary expenses in connection with the operation, management, maintenance, and improvement of the cemetery are permitted, as are reasonable fees for the services of a manager. How to file late tax returns Buying cemetery property. How to file late tax returns   Payments can be made to amortize debt incurred to buy land, but cannot be in the nature of profit distributions. How to file late tax returns You must show the method used to finance the purchase of the cemetery property and that the purchase price of the land at the time of its sale to the cemetery was not unreasonable. How to file late tax returns   Except for holders of preferred stock (discussed later), no person can have any interest in the net earnings of a tax-exempt cemetery company or crematorium. How to file late tax returns Therefore, if property is transferred to the organization in exchange for an interest in the organization's net earnings, the organization will not
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The How To File Late Tax Returns

How to file late tax returns 6. How to file late tax returns   Retail Tax on Heavy Trucks, Trailers, and Tractors Table of Contents Highway vehicle. How to file late tax returns Vehicles not considered highway vehicles. How to file late tax returns Idling reduction device. How to file late tax returns Separate purchase. How to file late tax returns Leases. How to file late tax returns Exported vehicle. How to file late tax returns Tax on resale of tax-paid trailers and semitrailers. How to file late tax returns Use treated as sale. How to file late tax returns Sale. How to file late tax returns Long-term lease. How to file late tax returns Short-term lease. How to file late tax returns Related person. How to file late tax returns Exclusions from tax base. How to file late tax returns Sales not at arm's length. How to file late tax returns Installment sales. How to file late tax returns Repairs and modifications. How to file late tax returns Further manufacture. How to file late tax returns Rail trailers and rail vans. How to file late tax returns Parts and accessories. How to file late tax returns Trash containers. How to file late tax returns House trailers. How to file late tax returns Camper coaches or bodies for self-propelled mobile homes. How to file late tax returns Farm feed, seed, and fertilizer equipment. How to file late tax returns Ambulances and hearses. How to file late tax returns Truck-tractors. How to file late tax returns Concrete mixers. How to file late tax returns Registration requirement. How to file late tax returns Further manufacture. How to file late tax returns A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles. How to file late tax returns Truck chassis and bodies. How to file late tax returns Truck trailer and semitrailer chassis and bodies. How to file late tax returns Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. How to file late tax returns A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it is equipped to tow a vehicle, such as a trailer or semitrailer. How to file late tax returns A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. How to file late tax returns A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. How to file late tax returns A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body. How to file late tax returns The seller is liable for the tax. How to file late tax returns Chassis or body. How to file late tax returns   A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. How to file late tax returns Highway vehicle. How to file late tax returns   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. How to file late tax returns Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. How to file late tax returns A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. How to file late tax returns A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). How to file late tax returns A special kind of cargo, goods, supplies, or materials. How to file late tax returns Some off-highway task unrelated to highway transportation, except as discussed next. How to file late tax returns Vehicles not considered highway vehicles. How to file late tax returns   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the retail tax. How to file late tax returns Specially designed mobile machinery for nontransportation functions. How to file late tax returns A self-propelled vehicle is not a highway vehicle if all the following apply. How to file late tax returns The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. How to file late tax returns The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. How to file late tax returns The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. How to file late tax returns Vehicles specially designed for off-highway transportation. How to file late tax returns A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired. How to file late tax returns To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. How to file late tax returns It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. How to file late tax returns Nontransportation trailers and semitrailers. How to file late tax returns A trailer or semitrailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. How to file late tax returns For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. How to file late tax returns Gross vehicle weight. How to file late tax returns   The tax does not apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight (defined below) of 33,000 pounds or less. How to file late tax returns It also does not apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. How to file late tax returns Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax. How to file late tax returns   The following four classifications of truck body types meet the suitable for use standard and will be excluded from the retail excise tax. How to file late tax returns Platform truck bodies 21 feet or less in length. How to file late tax returns Dry freight and refrigerated truck van bodies 24 feet or less in length. How to file late tax returns Dump truck bodies with load capacities of 8 cubic yards or less. How to file late tax returns Refuse packer truck bodies with load capacities of 20 cubic yards or less. How to file late tax returns For more information on these classifications, see Revenue Procedure 2005-19, which is on page 832 of I. How to file late tax returns R. How to file late tax returns B. How to file late tax returns 2005-14 at www. How to file late tax returns irs. How to file late tax returns gov/pub/irs-irbs/irb05-14. How to file late tax returns pdf. How to file late tax returns   The gross vehicle weight means the maximum total weight of a loaded vehicle. How to file late tax returns Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. How to file late tax returns The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. How to file late tax returns The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. How to file late tax returns See Regulations section 145. How to file late tax returns 4051-1(e)(3) for more information. How to file late tax returns Parts or accessories. How to file late tax returns   The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. How to file late tax returns For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. How to file late tax returns The tax applies in this case whether or not the retailer bills the parts or accessories separately. How to file late tax returns   If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they are shipped separately, at the same time, or on a different date. How to file late tax returns The tax applies unless there is evidence to the contrary. How to file late tax returns For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. How to file late tax returns The tax does not apply to parts and accessories that are spares or replacements. How to file late tax returns   The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories (discussed next) for the taxable articles listed earlier do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch. How to file late tax returns Idling reduction device. How to file late tax returns   An idling reduction device is any device or system of devices that provide the tractor with services, such as heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. How to file late tax returns The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. How to file late tax returns The EPA discusses idling reduction technologies on its website at www. How to file late tax returns epa. How to file late tax returns gov/smartway/technology/idling. How to file late tax returns htm. How to file late tax returns Separate purchase. How to file late tax returns   The tax generally applies to the price of a part or accessory and its installation if the following conditions are met. How to file late tax returns The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle. How to file late tax returns The installation occurs within 6 months after the vehicle is first placed in service. How to file late tax returns   The owners of the trade or business installing the parts or accessories are secondarily liable for the tax. How to file late tax returns   A vehicle is placed in service on the date the owner takes actual possession of the vehicle. How to file late tax returns This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner. How to file late tax returns   The tax does not apply if the installed part or accessory is a replacement part or accessory. How to file late tax returns The tax also does not apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. How to file late tax returns However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period. How to file late tax returns Example. How to file late tax returns You bought a taxable vehicle and placed it in service on April 8. How to file late tax returns On May 3, you bought and installed parts and accessories at a cost of $850. How to file late tax returns On July 15, you bought and installed parts and accessories for $300. How to file late tax returns Tax of $138 (12% of $1,150) applies on July 15. How to file late tax returns Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8. How to file late tax returns First retail sale defined. How to file late tax returns   The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies. How to file late tax returns There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers, later). How to file late tax returns The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax, later). How to file late tax returns The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis. How to file late tax returns There is no registration requirement. How to file late tax returns Leases. How to file late tax returns   A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. How to file late tax returns The tax is imposed on the lessor at the time of the lease. How to file late tax returns   A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. How to file late tax returns The tax is imposed on the lessor at the time of the lease. How to file late tax returns Exported vehicle. How to file late tax returns   A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation. How to file late tax returns Tax on resale of tax-paid trailers and semitrailers. How to file late tax returns   The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. How to file late tax returns The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. How to file late tax returns The credit cannot exceed the tax on the resale. How to file late tax returns See Regulations section 145. How to file late tax returns 4052-1(a)(4) for information on the conditions to allowance for the credit. How to file late tax returns Use treated as sale. How to file late tax returns   If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. How to file late tax returns Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. How to file late tax returns The tax attaches when the use begins. How to file late tax returns   If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use. How to file late tax returns   If the seller of an article does not regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles. How to file late tax returns   If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax is not incurred on the later sale or lease. How to file late tax returns Presumptive retail sales price. How to file late tax returns   There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. How to file late tax returns If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following discussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. How to file late tax returns Table 6-1 outlines the appropriate tax base calculation for various transactions. How to file late tax returns   The presumed markup percentage to be used for trucks and truck-tractors is 4%. How to file late tax returns But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero. How to file late tax returns Sale. How to file late tax returns   For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage times that sales price. How to file late tax returns Long-term lease. How to file late tax returns   In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage times the constructive sales price. How to file late tax returns Short-term lease. How to file late tax returns   When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles generally are sold in the ordinary course of trade by retailers. How to file late tax returns   But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use. How to file late tax returns   If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage. How to file late tax returns Related person. How to file late tax returns   A related person is any member of the same controlled group as the manufacturer, producer, or importer. How to file late tax returns Do not treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. How to file late tax returns Table 6-1. How to file late tax returns Tax Base IF the transaction is a. How to file late tax returns . How to file late tax returns . How to file late tax returns THEN figuring the base by using the. How to file late tax returns . How to file late tax returns . How to file late tax returns Sale by the manufacturer, producer, importer, or related person Sales price plus (presumed markup percentage × sales price) Sale by the dealer Total consideration paid for the item including any charges incident to placing it in a condition ready for use Long-term lease by the manufacturer, producer, importer, or related person Constructive sales price plus (presumed markup percentage × constructive sales price) Short-term lease by the manufacturer, producer, importer, or related person Constructive sales price at which such or similar articles are sold Short-term lease by a lessor other than the manufacturer, producer, importer, or related person Price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor plus a presumed markup percentage Short-term lease where the articles are regularly sold at arm's length Lowest established retail price in effect at the time of the taxable use General rule for sales by dealers to the consumer. How to file late tax returns   For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base. How to file late tax returns   When you sell an article to the consumer, generally you do not add a presumed markup to the tax base. How to file late tax returns However, you do add a markup if all the following apply. How to file late tax returns You do not perform any significant activities relating to the processing of the sale of a taxable article. How to file late tax returns The main reason for processing the sale through you is to avoid or evade the presumed markup. How to file late tax returns You do not have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. How to file late tax returns In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage times that selling price. How to file late tax returns Determination of tax base. How to file late tax returns   These rules apply to both normal retail sales price and presumptive retail sales price computations. How to file late tax returns To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. How to file late tax returns However, see Presumptive retail sales price, earlier. How to file late tax returns Exclusions from tax base. How to file late tax returns   Exclude from the tax base the retail excise tax imposed on the sale. How to file late tax returns Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. How to file late tax returns Also exclude the value of any used component of the article furnished by the first user of the article. How to file late tax returns   Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. How to file late tax returns These expenses are those incurred in delivery from the retail dealer to the customer. How to file late tax returns In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges do not exceed what it would have cost to ship the article to the dealer. How to file late tax returns   Exclude amounts charged for machinery or equipment that does not contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. How to file late tax returns For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. How to file late tax returns Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe. How to file late tax returns Sales not at arm's length. How to file late tax returns   For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the price for which similar articles are sold at retail in the ordinary course of trade. How to file late tax returns   A sale is not at arm's length if either of the following apply. How to file late tax returns One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price. How to file late tax returns The sale is made under special arrangements between a seller and a purchaser. How to file late tax returns Installment sales. How to file late tax returns   If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. How to file late tax returns The tax is figured on the entire sales price. How to file late tax returns No part of the tax is deferred because the sales price is paid in installments. How to file late tax returns Repairs and modifications. How to file late tax returns   The tax does not apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. How to file late tax returns This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. How to file late tax returns However, this exception generally does not apply to an article that was not subject to the tax when it was new. How to file late tax returns Further manufacture. How to file late tax returns   The tax does not apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. How to file late tax returns Do not treat a person as engaged in the manufacture of any article merely because that person combines the article with a: Coupling device (including any fifth wheel); Wrecker crane; Loading and unloading equipment (including any crane, hoist, winch, or power liftgate); Aerial ladder or tower; Ice and snow control equipment; Earth moving, excavation, and construction equipment; Spreader; Sleeper cab; Cab shield; or Wood or metal floor. How to file late tax returns Combining an article with an item in this list does not give rise to taxability. How to file late tax returns However, see Parts or accessories discussed earlier. How to file late tax returns Articles exempt from tax. How to file late tax returns   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions. How to file late tax returns Rail trailers and rail vans. How to file late tax returns   This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). How to file late tax returns Do not treat a piggyback trailer or semitrailer as designed for use as a railroad car. How to file late tax returns Parts and accessories. How to file late tax returns   This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase. How to file late tax returns Trash containers. How to file late tax returns   This is any box, container, receptacle, bin, or similar article that meets all the following conditions. How to file late tax returns It is designed to be used as a trash container. How to file late tax returns It is not designed to carry freight other than trash. How to file late tax returns It is not designed to be permanently mounted on or affixed to a truck chassis or body. How to file late tax returns House trailers. How to file late tax returns   This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks. How to file late tax returns Camper coaches or bodies for self-propelled mobile homes. How to file late tax returns   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. How to file late tax returns Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies. How to file late tax returns Farm feed, seed, and fertilizer equipment. How to file late tax returns   This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. How to file late tax returns This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted. How to file late tax returns Ambulances and hearses. How to file late tax returns   This is any ambulance, hearse, or combination ambulance-hearse. How to file late tax returns Truck-tractors. How to file late tax returns   This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals. How to file late tax returns Concrete mixers. How to file late tax returns   This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. How to file late tax returns This exemption does not apply to the chassis on which the article is mounted. How to file late tax returns Sales exempt from tax. How to file late tax returns   The following sales are ordinarily exempt from tax. How to file late tax returns Sales to a state or local government for its exclusive use. How to file late tax returns Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function. How to file late tax returns Sales to a nonprofit educational organization for its exclusive use. How to file late tax returns Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. How to file late tax returns Sales for use by the purchaser for further manufacture of other taxable articles (see below). How to file late tax returns Sales for export or for resale by the purchaser to a second purchaser for export. How to file late tax returns Sales to the United Nations for official use. How to file late tax returns Registration requirement. How to file late tax returns   In general, the seller and buyer must be registered for a sale to be tax free. How to file late tax returns See the Form 637 instructions for more information. How to file late tax returns Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for export, and sales for resale or long term leasing. How to file late tax returns Further manufacture. How to file late tax returns   If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them. How to file late tax returns Credits or refunds. How to file late tax returns   A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. How to file late tax returns The person using the article as a component part is eligible for the credit or refund. How to file late tax returns   A credit or refund is allowable if, before any other use, an article is, by any person: Exported, Used or sold for use as supplies for vessels, Sold to a state or local government for its exclusive use, Sold to a nonprofit educational organization for its exclusive use, or Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. How to file late tax returns A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance. How to file late tax returns   See also Conditions to allowance in chapter 5. How to file late tax returns Tire credit. How to file late tax returns   A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. How to file late tax returns The credit is equal to the manufacturers excise tax imposed on the taxable tires (discussed earlier). How to file late tax returns This is the section 4051(d) taxable tire credit and is claimed on Schedule C (Form 720) for the same quarter for which the tax on the heavy vehicle is reported. How to file late tax returns Prev  Up  Next   Home   More Online Publications