501(c)(4)

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How to file for US Federal tax return and for New York State for Lions Clubs International District?

Filing US Federal Tax Return for Lions Clubs International District

Step-by-Step Guide to Filing Federal Tax Return

1. Determine Your Filing Form Based on Gross Receipts and Assets:
   • Form 990-N (e-Postcard): For districts with normally $50,000 or less in annual gross receipts. This is the simplest filing—a quick electronic notice confirming the organization is active. No financial statements are required.
   • Form 990-EZ (Short Form): For districts with gross receipts less than $200,000 and total assets less than $500,000. This requires basic financial information, program accomplishments, and governance details.
   • Form 990 (Full Form): For districts with gross receipts of $200,000 or more, or total assets of $500,000 or more. This is the most detailed, including full financial statements, schedules for related-party transactions, and lobbying activities (common for 501(c)(4)s).
   • If your district has unrelated business income (e.g., income from activities not substantially related to your exempt purpose, like selling non-charitable merchandise), file Form 990-T in addition to the above. Lions districts must review activities against IRS guidelines for unrelated business income tax (UBIT).Use the IRS's Exempt Organizations Select Check tool to confirm your district's status and filing requirements.
2. Gather Required Information:
   • Employer Identification Number (EIN): Obtain or confirm via IRS Form SS-4 if needed (most Lions districts already have one under the group exemption).
   • Financial records: Income, expenses, balance sheet, and program service accomplishments for the fiscal year (Lions districts typically follow a July 1–June 30 fiscal year).
   • Governance details: Officers, directors, compensation, and any lobbying or political activities (501(c)(4)s can engage in some lobbying but must report it).
   • For 501(c)(4)s, note that contributions are not tax-deductible for donors, unlike 501(c)(3) organizations.
3. File Electronically (Required for Most Organizations):
   • All Form 990, 990-EZ, and 990-PF filings must be electronic as of tax years beginning after July 1, 2019 (per the Taxpayer First Act). Form 990-N is always electronic.
   • Use an IRS-approved e-file provider (e.g., software like TurboTax Business, or services like ExpressTaxExempt). Free filing options are available for Form 990-N via the IRS website.
   • Submit via the IRS's Electronic Filing System or an authorized transmitter. Paper filings are only allowed for certain exceptions (e.g., foreign organizations) and require a specific statement.
4. Due Date and Extensions:
   • Due by the 15th day of the 5th month after your fiscal year-end (e.g., November 15 for a June 30 year-end).
   • Request a 6-month automatic extension using Form 8868 (file electronically before the original due date). No reason needed, but it doesn't extend payment of any taxes owed (e.g., UBIT).
5. Where to File:
   • Electronically through IRS-approved software or the Form 990-N Electronic Notice Registration System (for 990-N).
   • No fee for filing, but late filings incur penalties: $20–$105 per day (up to the lesser of $10,000 or 5% of gross receipts), plus potential revocation after three years.
6. Additional Considerations for Lions Districts:
   • Review LCI's "Tax Issues and Regulations Affecting Lions Clubs" guidelines (available on the LCI website) for specifics on UBIT, which may apply to district events like fundraisers.
   • If your district is new or needs to notify the IRS of 501(c)(4) intent, file Form 8976 electronically within 60 days of formation (though most established districts are covered).
   • Public disclosure: Form 990 filings become public; post them on your website or GuideStar for transparency.

For detailed instructions, download forms from IRS.gov (search for "Form 990 instructions"). Consult a tax professional familiar with nonprofits, as Lions districts may have unique activities (e.g., community service events) that affect reporting.

Filing New York State Tax Return for Lions Clubs International District

New York State recognizes federal 501(c)(4) tax-exempt status for income tax purposes but requires separate applications for sales/use tax exemptions and annual reporting for charitable activities. Lions Clubs districts in New York are considered charitable organizations if they solicit contributions or hold assets for charitable purposes (e.g., community service, vision programs). As 501(c)(4)s, they must register with the state and file annual financial reports. There is no state income tax return for exempt organizations, but compliance avoids penalties like fines up to $1,000 per violation.

Step-by-Step Guide to Filing New York State Requirements

1. Register as a Charitable Organization (If Not Already Done):
   • All 501(c)(4) Lions districts operating in New York must register with the New York Attorney General's Charities Bureau before soliciting funds.
   • File Form CHAR410 (Initial Charities Registration) electronically via the Charities Bureau website.
   • Attachments: Certificate of Incorporation, IRS determination letter (or group exemption reference), bylaws, and recent financial reports (last 3–6 years).
   • Fee: $25 (waived for some small organizations).
   • Exemptions: Purely membership-based groups without public solicitation may qualify for exemption, but most Lions districts do not.
2. Apply for State Tax Exemptions (One-Time, Unless Changes Occur):
   • Corporation Franchise Tax Exemption: File Form CT-247 with the New York Department of Taxation and Finance (DTF) to confirm exemption from state corporate income/franchise taxes. Attach your federal exemption details. No fee; mail to: NYS Tax Department, Corporation Tax, W.A. Harriman Campus, Albany, NY 12227.
   • Sales and Use Tax Exemption: File Form ST-119.2 with DTF for a certificate exempting purchases of tangible property/services from sales tax. Attach IRS group exemption info. No fee; mail to: NYS Tax Department, Exempt Organizations, W.A. Harriman Campus, Albany, NY 12227-0125.
   • Renewals: Not required annually, but notify DTF of changes (e.g., address, activities).
3. File Annual Financial Report:
   • Form CHAR500 (Annual Filing for Charitable Organizations): Required for all registered charities, regardless of size. This is New York's equivalent of a state "tax return" for nonprofits.
     • Includes: Basic organization info, financial summary (revenue, expenses), IRS Form 990/990-EZ/990-N copy, and officer details.
     • Even if exempt from federal Form 990, file CHAR500 if registered.
   • Due: 4.5 months after fiscal year-end (e.g., November 15 for June 30 year-end). Aligns with federal deadlines.
   • File electronically via the Charities Bureau's online portal (iCHARITIES). No fee.
   • Extension: Automatic if you get a federal extension (Form 8868); otherwise, request one via the portal.
4. Additional State Filings for 501(c)(4) Organizations:
   • Funding Disclosure Report: If your district receives $5,000+ in funding from a single source in a calendar year (e.g., grants or large donations), file this biennially with the NYS Department of State (DOS). Fee: $25. Due within 30 days of the reporting period end; file online via DOS Financial Reporting System.
   • No biennial corporate report required for nonprofits with DOS.
5. Penalties and Compliance:
   • Late CHAR500: $25/day (max $1,000); repeated failures can lead to suspension of solicitation rights.
   • Maintain records: Keep financials for 7 years; make them available for state audits.
   • For Lions-specific guidance: Check LCI's state-by-state resources on their website, which note New York's registration and solicitation rules for clubs/districts.

File all state forms via the respective agency portals: Charities Bureau (ag.ny.gov/charities), DTF (tax.ny.gov), or DOS (dos.ny.gov). If your district engages in fundraising events, ensure compliance with New York solicitation laws. Strongly recommend consulting a New York nonprofit attorney or accountant, as requirements can vary by district activities (e.g., if it borders other states). For official forms and updates, visit the linked state websites.