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Need To File 2012 Taxes

Need to file 2012 taxes 5. Need to file 2012 taxes   Manufacturers Taxes Table of Contents Importer. Need to file 2012 taxes Use considered sale. Need to file 2012 taxes Lease considered sale. Need to file 2012 taxes Bonus goods. Need to file 2012 taxes Taxable Event ExemptionsRequirements for Exempt Sales Credits or Refunds Sport Fishing EquipmentRelated person. Need to file 2012 taxes Bows, Quivers, Broadheads, and Points Arrow ShaftsExemption for certain wooden arrows. Need to file 2012 taxes CoalExported. Need to file 2012 taxes Taxable TiresQualifying intercity or local bus. Need to file 2012 taxes Qualifying school bus. Need to file 2012 taxes Gas Guzzler TaxVehicles not subject to tax. Need to file 2012 taxes Imported automobiles. Need to file 2012 taxes VaccinesConditions to allowance. Need to file 2012 taxes Taxable Medical Devices The following discussion of manufacturers taxes applies to the tax on: Sport fishing equipment; Fishing rods and fishing poles; Electric outboard motors; Fishing tackle boxes; Bows, quivers, broadheads, and points; Arrow shafts; Coal; Taxable tires; Gas guzzler automobiles; and Vaccines. Need to file 2012 taxes Manufacturer. Need to file 2012 taxes   The term “manufacturer” includes a producer or importer. Need to file 2012 taxes A manufacturer is any person who produces a taxable article from new or raw material, or from scrap, salvage, or junk material, by processing or changing the form of an article or by combining or assembling two or more articles. Need to file 2012 taxes If you furnish the materials and keep title to those materials and to the finished article, you are considered the manufacturer even though another person actually manufactures the taxable article. Need to file 2012 taxes   A manufacturer who sells a taxable article in knockdown (unassembled) condition is liable for the tax. Need to file 2012 taxes The person who buys these component parts and assembles a taxable article may also be liable for tax as a further manufacturer depending on the labor, material, and overhead required to assemble the completed article if the article is assembled for business use. Need to file 2012 taxes Importer. Need to file 2012 taxes   An importer is a person who brings a taxable article into the United States, or withdraws a taxable article from a customs bonded warehouse for sale or use in the United States. Need to file 2012 taxes Sale. Need to file 2012 taxes   A sale is the transfer of the title to, or the substantial incidents of ownership in, an article to a buyer for consideration that may consist of money, services, or other things. Need to file 2012 taxes Use considered sale. Need to file 2012 taxes   A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold. Need to file 2012 taxes Lease considered sale. Need to file 2012 taxes   The lease of an article (including any renewal or extension of the lease) by the manufacturer is generally considered a taxable sale. Need to file 2012 taxes However, for the gas guzzler tax, only the first lease (excluding any renewal or extension) of the automobile by the manufacturer is considered a sale. Need to file 2012 taxes Manufacturers taxes based on sale price. Need to file 2012 taxes   The manufacturers taxes imposed on the sale of sport fishing equipment, electric outboard motors, and bows are based on the sale price of the article. Need to file 2012 taxes The taxes imposed on coal are based either on the sale price or the weight. Need to file 2012 taxes   The price for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. Need to file 2012 taxes However, you include certain charges made when a taxable article is sold and you exclude others. Need to file 2012 taxes To figure the price on which you base the tax, use the following rules. Need to file 2012 taxes Include both the following charges in the price. Need to file 2012 taxes Any charge for coverings or containers (regardless of their nature). Need to file 2012 taxes Any charge incident to placing the article in a condition packed ready for shipment. Need to file 2012 taxes Exclude all the following amounts from the price. Need to file 2012 taxes The manufacturers excise tax, whether or not it is stated as a separate charge. Need to file 2012 taxes The transportation charges pursuant to the sale. Need to file 2012 taxes The cost of transportation of goods to a warehouse before their bona fide sale is not excludable. Need to file 2012 taxes Delivery, insurance, installation, retail dealer preparation charges, and other charges you incur in placing the article in the hands of the purchaser under a bona fide sale. Need to file 2012 taxes Discounts, rebates, and similar allowances actually granted to the purchaser. Need to file 2012 taxes Local advertising charges. Need to file 2012 taxes A charge made separately when the article is sold and that qualifies as a charge for “local advertising” may, within certain limits, be excluded from the sale price. Need to file 2012 taxes Charges for warranty paid at the purchaser's option. Need to file 2012 taxes However, a charge for a warranty of an article that the manufacturer requires the purchaser to pay to obtain the article is included in the sale price on which the tax is figured. Need to file 2012 taxes Bonus goods. Need to file 2012 taxes   Allocate the sale price if you give free nontaxable goods with the purchase of taxable merchandise. Need to file 2012 taxes Figure the tax only on the sale price attributable to the taxable articles. Need to file 2012 taxes Example. Need to file 2012 taxes A manufacturer sells a quantity of taxable articles and gives the purchaser certain nontaxable articles as a bonus. Need to file 2012 taxes The sale price of the shipment is $1,500. Need to file 2012 taxes The normal sale price is $2,000: $1,500 for the taxable articles and $500 for the nontaxable articles. Need to file 2012 taxes Since the taxable items represent 75% of the normal sale price, the tax is based on 75% of the actual sale price, or $1,125 (75% of $1,500). Need to file 2012 taxes The remaining $375 is allocated to the nontaxable articles. Need to file 2012 taxes Taxable Event Tax attaches when the title to the article sold passes from the manufacturer to the buyer. Need to file 2012 taxes When the title passes depends on the intention of the parties as gathered from the contract of sale. Need to file 2012 taxes In the absence of expressed intention, the legal rules of presumption followed in the jurisdiction where the sale occurs determine when title passes. Need to file 2012 taxes If the taxable article is used by the manufacturer, the tax attaches at the time use begins. Need to file 2012 taxes The manufacturer is liable for the tax. Need to file 2012 taxes Partial payments. Need to file 2012 taxes   The tax applies to each partial payment received when taxable articles are: Leased, Sold conditionally, Sold on installment with chattel mortgage, or Sold on installment with title to pass in the future. Need to file 2012 taxes To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment. Need to file 2012 taxes Exemptions The following sales by the manufacturer are exempt from the manufacturers tax. Need to file 2012 taxes Sale of an article to a state or local government for the exclusive use of the state or local government. Need to file 2012 taxes This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Need to file 2012 taxes State is defined in Definitions in chapter 1. Need to file 2012 taxes Sale of an article to a nonprofit educational organization for its exclusive use. Need to file 2012 taxes This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Need to file 2012 taxes Nonprofit educational organization is defined under Communications Tax in chapter 4. Need to file 2012 taxes Sale of an article to a qualified blood collector organization. Need to file 2012 taxes This exemption does not apply to gas guzzlers, recreational equipment, and vaccines. Need to file 2012 taxes Qualified blood collector organizations are defined under Communications Tax in chapter 4. Need to file 2012 taxes Sale of an article for use by the purchaser as supplies for vessels. Need to file 2012 taxes This exemption does not apply to the taxes on coal and vaccines. Need to file 2012 taxes Supplies for vessels means ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or any foreign nation, vessels employed in the fisheries or whaling business, or vessels actually engaged in foreign trade. Need to file 2012 taxes Sale of an article for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser for further manufacture. Need to file 2012 taxes This exemption does not apply to the tax on coal and tires. Need to file 2012 taxes Use for further manufacture means use in the manufacture or production of an article subject to the manufacturers excise taxes. Need to file 2012 taxes 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 sold them. Need to file 2012 taxes Sale of an article for export or for resale by the purchaser to a second purchaser for export. Need to file 2012 taxes The article may be exported to a foreign country or to a possession of the United States. Need to file 2012 taxes A vaccine shipped to a possession of the United States is not considered to be exported. Need to file 2012 taxes If an article is sold tax free for export and the manufacturer does not receive proof of export, described later, the manufacturer is liable for the tax. Need to file 2012 taxes Sales of articles of native Indian handicraft, such as bows and arrow shafts, manufactured by Indians on reservations, in Indian schools, or under U. Need to file 2012 taxes S. Need to file 2012 taxes jurisdiction in Alaska. Need to file 2012 taxes For tire exemptions, see section 4221(e)(2). Need to file 2012 taxes Requirements for Exempt Sales The following requirements must be met for a sale to be exempt from the manufacturers tax. Need to file 2012 taxes Registration requirements. Need to file 2012 taxes   The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. Need to file 2012 taxes See the Form 637 instructions for more information. Need to file 2012 taxes Exceptions to registration requirements. Need to file 2012 taxes   Registration is not required for: State or local governments, Foreign purchasers of articles sold or resold for export, The United States, or Parties to a sale of supplies for vessels and aircraft. Need to file 2012 taxes Certification requirement. Need to file 2012 taxes   If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. Need to file 2012 taxes The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale. Need to file 2012 taxes   For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. Need to file 2012 taxes See Regulations section 48. Need to file 2012 taxes 4221-5(c) for the certificate requirements. Need to file 2012 taxes   For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser are not registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. Need to file 2012 taxes See Regulations section 48. Need to file 2012 taxes 4221-4(d) for the certificate requirements. Need to file 2012 taxes Proof of export requirement. Need to file 2012 taxes   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. Need to file 2012 taxes See Regulations section 48. Need to file 2012 taxes 4221-3(d) for evidence that qualifies as proof of exportation. Need to file 2012 taxes Proof of resale for further manufacture requirement. Need to file 2012 taxes   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. Need to file 2012 taxes See Regulations section 48. Need to file 2012 taxes 4221-2(c) for evidence that qualifies as proof of resale. Need to file 2012 taxes Information to be furnished to purchaser. Need to file 2012 taxes   The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate. Need to file 2012 taxes Credits or Refunds The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. Need to file 2012 taxes The claim must set forth in detail the facts upon which the claim is based. Need to file 2012 taxes Uses, sales, and exports. Need to file 2012 taxes   A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person: Exported, Used or sold for use as supplies for vessels (except for coal and vaccines), Sold to a state or local government for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a nonprofit educational organization for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a qualified blood collector organization for its exclusive use (except for gas guzzlers, recreational equipment, and vaccines), or Used for further manufacture of another article subject to the manufacturers taxes (except for coal). Need to file 2012 taxes Export. Need to file 2012 taxes   If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. Need to file 2012 taxes In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund. Need to file 2012 taxes Price readjustments. Need to file 2012 taxes   In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price. Need to file 2012 taxes Conditions to allowance. Need to file 2012 taxes   To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization; the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information. Need to file 2012 taxes The claimant sold the article at a tax-excluded price. Need to file 2012 taxes The person has repaid, or agreed to repay, the tax to the ultimate vendor of the article. Need to file 2012 taxes The person has obtained the written consent of the ultimate vendor to make the claim. Need to file 2012 taxes The ultimate vendor generally is the seller making the sale that gives rise to the overpayment of tax. Need to file 2012 taxes Claim for further manufacture. Need to file 2012 taxes   To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following. Need to file 2012 taxes The name and address of the manufacturer and the date of payment. Need to file 2012 taxes An identification of the article for which the credit or refund is claimed. Need to file 2012 taxes The amount of tax paid on the article and the date on which it was paid. Need to file 2012 taxes Information indicating that the article was used as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer, or was sold on or in connection with, or with the sale of a second article manufactured or produced by the manufacturer. Need to file 2012 taxes An identification of the second article. Need to file 2012 taxes   For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. Need to file 2012 taxes The statement must include the amount of tax paid, the date of payment, and the office to which it was paid. Need to file 2012 taxes Claim for price readjustment. Need to file 2012 taxes   To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim, a statement that contains the following. Need to file 2012 taxes A description of the circumstances that gave rise to the price readjustment. Need to file 2012 taxes An identification of the article whose price was readjusted. Need to file 2012 taxes The price at which the article was sold. Need to file 2012 taxes The amount of tax paid on the article and the date on which it was paid. Need to file 2012 taxes The name and address of the purchaser. Need to file 2012 taxes The amount repaid to the purchaser or credited to the purchaser's account. Need to file 2012 taxes Sport Fishing Equipment A tax of 10% of the sale price is imposed on many articles of sport fishing equipment sold by the manufacturer. Need to file 2012 taxes This includes any parts or accessories sold on or in connection with the sale of those articles. Need to file 2012 taxes Pay this tax with Form 720. Need to file 2012 taxes No tax deposits are required. Need to file 2012 taxes Sport fishing equipment includes all the following items. Need to file 2012 taxes Fishing rods and poles (and component parts), fishing reels, fly fishing lines, and other fishing lines not over 130 pounds test, fishing spears, spear guns, and spear tips. Need to file 2012 taxes Items of terminal tackle, including leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels (but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in (1)). Need to file 2012 taxes The following items of fishing supplies and accessories: fish stringers, creels, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies. Need to file 2012 taxes Fishing tip-ups and tilts. Need to file 2012 taxes Fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers. Need to file 2012 taxes See Revenue Ruling 88-52 in Cumulative Bulletin 1988-1 for a more complete description of the items of taxable equipment. Need to file 2012 taxes Fishing rods and fishing poles. Need to file 2012 taxes   The tax on fishing rods and fishing poles (and component parts) is 10% of the sales price not to exceed $10 per article. Need to file 2012 taxes The tax is paid by the manufacturer, producer, or importer. Need to file 2012 taxes Fishing tackle boxes. Need to file 2012 taxes   The tax on fishing tackle boxes is 3% of the sales price. Need to file 2012 taxes The tax is paid by the manufacturer, producer, or importer. Need to file 2012 taxes Electric outboard boat motors. Need to file 2012 taxes   A tax of 3% of the sale price is imposed on the sale by the manufacturer of electric outboard motors. Need to file 2012 taxes This includes any parts or accessories sold on or in connection with the sale of those articles. Need to file 2012 taxes Certain equipment resale. Need to file 2012 taxes   The tax on the sale of sport fishing equipment is imposed a second time under the following circumstances. Need to file 2012 taxes If the manufacturer sells a taxable article to any person, the manufacturer is liable for the tax. Need to file 2012 taxes If the purchaser or any other person then sells it to a person who is related (discussed next) to the manufacturer, that related person is liable for a second tax on any subsequent sale of the article. Need to file 2012 taxes The second tax, however, is not imposed if the constructive sale price rules under section 4216(b) apply to the sale by the manufacturer. Need to file 2012 taxes   If the second tax is imposed, a credit for tax previously paid by the manufacturer is available provided the related person can document the tax paid. Need to file 2012 taxes The documentation requirement is generally satisfied only through submission of copies of actual records of the person that previously paid the tax. Need to file 2012 taxes Related person. Need to file 2012 taxes   For the tax on sport fishing equipment, a person is a related person of the manufacturer if that person and the manufacturer have a relationship described in section 465(b)(3)(C). Need to file 2012 taxes Bows, Quivers, Broadheads, and Points The tax on bows is 11% (. Need to file 2012 taxes 11) of the sales price. Need to file 2012 taxes The tax is paid by the manufacturer, producer, or importer. Need to file 2012 taxes It applies to bows having a peak draw weight of 30 pounds or more. Need to file 2012 taxes The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment to a taxable bow and any quiver, broadhead, or point suitable for use with arrows described below. Need to file 2012 taxes Pay this tax with Form 720. Need to file 2012 taxes No tax deposits are required. Need to file 2012 taxes Arrow Shafts The tax on arrow shafts is listed on Form 720. Need to file 2012 taxes The tax is paid by the manufacturer, producer, or importer of any arrow shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow that after its assembly meets either of the following conditions. Need to file 2012 taxes It measures 18 inches or more in overall length. Need to file 2012 taxes It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier. Need to file 2012 taxes Exemption for certain wooden arrows. Need to file 2012 taxes   After October 3, 2008, the tax does not apply to any shaft made of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) and used in the manufacture of any arrow that after its assembly meets both of the following conditions. Need to file 2012 taxes It measures 5/16 of an inch or less in diameter. Need to file 2012 taxes It is not suitable for use with a taxable bow, described earlier. Need to file 2012 taxes Pay this tax with Form 720. Need to file 2012 taxes No tax deposits are required. Need to file 2012 taxes Coal A tax is imposed on the first sale of coal mined in the United States. Need to file 2012 taxes The producer of the coal is liable for the tax. Need to file 2012 taxes The producer is the person who has vested ownership of the coal under state law immediately after the coal is severed from the ground. Need to file 2012 taxes Determine vested ownership without regard to any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. Need to file 2012 taxes A producer includes any person who extracts coal from coal waste refuse piles (or from the silt waste product that results from the wet washing of coal). Need to file 2012 taxes The tax is not imposed on coal extracted from a riverbed by dredging if it can be shown that the coal has been taxed previously. Need to file 2012 taxes Tax rates. Need to file 2012 taxes   The tax on underground-mined coal is the lower of: $1. Need to file 2012 taxes 10 a ton, or 4. Need to file 2012 taxes 4% of the sale price. Need to file 2012 taxes   The tax on surface-mined coal is the lower of: 55 cents a ton, or 4. Need to file 2012 taxes 4% of the sale price. Need to file 2012 taxes   Coal will be taxed at the 4. Need to file 2012 taxes 4% rate if the selling price is less than $25 a ton for underground-mined coal and less than $12. Need to file 2012 taxes 50 a ton for surface-mined coal. Need to file 2012 taxes Apply the tax proportionately if a sale or use includes a portion of a ton. Need to file 2012 taxes Example. Need to file 2012 taxes If you sell 21,000 pounds (10. Need to file 2012 taxes 5 tons) of coal from an underground mine for $525, the price per ton is $50. Need to file 2012 taxes The tax is $1. Need to file 2012 taxes 10 × 10. Need to file 2012 taxes 5 tons ($11. Need to file 2012 taxes 55). Need to file 2012 taxes Coal production. Need to file 2012 taxes   Coal is produced from surface mines if all geological matter (trees, earth, rock) above the coal is removed before the coal is mined. Need to file 2012 taxes Treat coal removed by auger and coal reclaimed from coal waste refuse piles as produced from a surface mine. Need to file 2012 taxes   Treat coal as produced from an underground mine when the coal is not produced from a surface mine. Need to file 2012 taxes In some cases, a single mine may yield coal from both surface mining and underground mining. Need to file 2012 taxes Determine if the coal is from a surface mine or an underground mine for each ton of coal produced and not on a mine-by-mine basis. Need to file 2012 taxes Determining tonnage or selling price. Need to file 2012 taxes   The producer pays the tax on coal at the time of sale or use. Need to file 2012 taxes In figuring the selling price for applying the tax, the point of sale is f. Need to file 2012 taxes o. Need to file 2012 taxes b. Need to file 2012 taxes (free on board) mine or f. Need to file 2012 taxes o. Need to file 2012 taxes b. Need to file 2012 taxes cleaning plant if you clean the coal before selling it. Need to file 2012 taxes This applies even if you sell the coal for a delivered price. Need to file 2012 taxes The f. Need to file 2012 taxes o. Need to file 2012 taxes b. Need to file 2012 taxes mine or f. Need to file 2012 taxes o. Need to file 2012 taxes b. Need to file 2012 taxes cleaning plant is the point at which you figure the number of tons sold for applying the applicable tonnage rate, and the point at which you figure the sale price for applying the 4. Need to file 2012 taxes 4% rate. Need to file 2012 taxes   The tax applies to the full amount of coal sold. Need to file 2012 taxes However, the IRS allows a calculated reduction of the taxable weight of the coal for the weight of the moisture in excess of the coal's inherent moisture content. Need to file 2012 taxes Include in the sale price any additional charge for a freeze-conditioning additive in figuring the tax. Need to file 2012 taxes   Do not include in the sales price the excise tax imposed on coal. Need to file 2012 taxes Coal used by the producer. Need to file 2012 taxes   The tax on coal applies if the coal is used by the producer in other than a mining process. Need to file 2012 taxes A mining process means the same for this purpose as for percentage depletion. Need to file 2012 taxes For example, the tax does not apply if, before selling the coal, you break it, clean it, size it, or apply any other process considered mining under the rules for depletion. Need to file 2012 taxes In this case, the tax applies only when you sell the coal. Need to file 2012 taxes The tax does not apply to coal used as fuel in the coal drying process since it is considered to be used in a mining process. Need to file 2012 taxes However, the tax does apply when you use the coal as fuel or as an ingredient in making coke since the coal is not used in a mining process. Need to file 2012 taxes   You must use a constructive sale price to figure the tax under the 4. Need to file 2012 taxes 4% rate if you use the coal in other than a mining process. Need to file 2012 taxes Base your constructive sale price on sales of a like kind and grade of coal by you or other producers made f. Need to file 2012 taxes o. Need to file 2012 taxes b. Need to file 2012 taxes mine or cleaning plant. Need to file 2012 taxes Normally, you use the same constructive price used to figure your percentage depletion deduction. Need to file 2012 taxes Blending. Need to file 2012 taxes   If you blend surface-mined coal with underground-mined coal during the cleaning process, you must figure the excise tax on the sale of the blended, cleaned coal. Need to file 2012 taxes Figure the tax separately for each type of coal in the blend. Need to file 2012 taxes Base the tax on the amount of each type in the blend if you can determine the proportion of each type of coal contained in the final blend. Need to file 2012 taxes Base the tax on the ratio of each type originally put into the cleaning process if you cannot determine the proportion of each type of coal in the blend. Need to file 2012 taxes However, the tax is limited to 4. Need to file 2012 taxes 4% of the sale price per ton of the blended coal. Need to file 2012 taxes Exemption from tax. Need to file 2012 taxes   The tax does not apply to sales of lignite and imported coal. Need to file 2012 taxes The only other exemption from the tax on the sale of coal is for coal exported as discussed next. Need to file 2012 taxes Exported. Need to file 2012 taxes   The tax does not apply to the sale of coal if the coal is in the stream of export when sold by the producer and the coal is actually exported. Need to file 2012 taxes   Coal is in the stream of export when sold by the producer if the sale is a step in the exportation of the coal to its ultimate destination in a foreign country. Need to file 2012 taxes For example, coal is in the stream of export when: The coal is loaded on an export vessel and title is transferred from the producer to a foreign purchaser, or The producer sells the coal to an export broker in the United States under terms of a contract showing that the coal is to be shipped to a foreign country. Need to file 2012 taxes   Proof of export includes any of the following items. Need to file 2012 taxes A copy of the export bill of lading issued by the delivering carrier. Need to file 2012 taxes A certificate signed by the export carrier's agent or representative showing actual exportation of the coal. Need to file 2012 taxes A certificate of landing signed by a customs officer of the foreign country to which the coal is exported. Need to file 2012 taxes If the foreign country does not have a customs administrator, a statement of the foreign consignee showing receipt of the coal. Need to file 2012 taxes Taxable Tires Taxable tires are divided into three categories for reporting and figuring the tax as described below. Need to file 2012 taxes A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $. Need to file 2012 taxes 0945 ($. Need to file 2012 taxes 04725 in the case of a biasply tire or super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. Need to file 2012 taxes The three categories for reporting the tax and the tax rate are listed below. Need to file 2012 taxes Taxable tires other than biasply or super single tires at $. Need to file 2012 taxes 0945. Need to file 2012 taxes Taxable tires, biasply or super single tires (other than super single tires designed for steering) at $. Need to file 2012 taxes 04725. Need to file 2012 taxes Taxable tires, super single tires designed for steering at $. Need to file 2012 taxes 0945. Need to file 2012 taxes A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use. Need to file 2012 taxes A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. Need to file 2012 taxes A super single tire is a tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. Need to file 2012 taxes Special rule, manufacturer's retail stores. Need to file 2012 taxes   The excise tax on taxable tires is imposed at the time the taxable tires are delivered to the manufacturer-owned retail stores, not at the time of sale. Need to file 2012 taxes Tires on imported articles. Need to file 2012 taxes   The importer of an article equipped with taxable tires is treated as the manufacturer of the tires and is liable for the taxable tire excise tax when the article is sold (except in the case of an automobile bus chassis or body with tires). Need to file 2012 taxes Tires exempt from tax. Need to file 2012 taxes   The tax on taxable tires does not apply to the following items. Need to file 2012 taxes Domestically recapped or retreaded tires if the tires have been sold previously in the United States and were taxable tires at the time of sale. Need to file 2012 taxes Tire carcasses not suitable for commercial use. Need to file 2012 taxes Tires for use on qualifying intercity, local, and school buses. Need to file 2012 taxes For tax-free treatment, the registration requirements discussed earlier under Requirements for Exempt Sales apply. Need to file 2012 taxes Tires sold for the exclusive use of the Department of Defense or the Coast Guard. Need to file 2012 taxes Tires of a type used exclusively on mobile machinery. Need to file 2012 taxes A taxable tire used on mobile machinery is not exempt from tax. Need to file 2012 taxes Qualifying intercity or local bus. Need to file 2012 taxes   This is any bus used mainly (more than 50%) to transport the general public for a fee and that either operates on a schedule along regular routes or seats at least 20 adults (excluding the driver). Need to file 2012 taxes Qualifying school bus. Need to file 2012 taxes   This is any bus substantially all the use (85% or more) of which is to transport students and employees of schools. Need to file 2012 taxes Credit or refund. Need to file 2012 taxes   A credit or refund (without interest) is allowable on tax-paid tires if the tires have been: Exported; Sold to a state or local government for its exclusive use; Sold to a nonprofit educational organization for its exclusive use (as defined under Communications Tax in chapter 4); Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood; Used or sold for use as supplies for vessels; or Sold in connection with qualified intercity, local, or school buses. Need to file 2012 taxes   Also, a credit or refund (without interest) is allowable on tax-paid tires sold by any person on, or in connection with, any other article that is sold or used in an activity listed above. Need to file 2012 taxes   The person who paid the tax is eligible to make the claim. Need to file 2012 taxes Gas Guzzler Tax Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the Environmental Protection Agency (EPA) of less than 22. Need to file 2012 taxes 5 miles per gallon. Need to file 2012 taxes If you import an automobile for personal use, you may be liable for this tax. Need to file 2012 taxes Figure the tax on Form 6197, as discussed later. Need to file 2012 taxes The tax rate is based on fuel economy rating. Need to file 2012 taxes The tax rates for the gas guzzler tax are shown on Form 6197. Need to file 2012 taxes A person that lengthens an existing automobile is the manufacturer of an automobile. Need to file 2012 taxes Automobiles. Need to file 2012 taxes   An automobile (including limousines) means any four-wheeled vehicle that is: Rated at an unloaded gross vehicle weight of 6,000 pounds or less, Propelled by an engine powered by gasoline or diesel fuel, and Intended for use mainly on public streets, roads, and highways. Need to file 2012 taxes Vehicles not subject to tax. Need to file 2012 taxes   For the gas guzzler tax, the following vehicles are not considered automobiles. Need to file 2012 taxes Limousines with a gross unloaded vehicle weight of more than 6,000 pounds. Need to file 2012 taxes Vehicles operated exclusively on a rail or rails. Need to file 2012 taxes Vehicles sold for use and used primarily: As ambulances or combination ambulance-hearses, For police or other law enforcement purposes by federal, state, or local governments, or For firefighting purposes. Need to file 2012 taxes Vehicles treated under 49 U. Need to file 2012 taxes S. Need to file 2012 taxes C. Need to file 2012 taxes 32901 (1978) as non-passenger automobiles. Need to file 2012 taxes This includes limousines manufactured primarily to transport more than 10 persons. Need to file 2012 taxes   The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered. Need to file 2012 taxes   Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function. Need to file 2012 taxes Model type. Need to file 2012 taxes   Model type is a particular class of automobile as determined by EPA regulations. Need to file 2012 taxes Fuel economy. Need to file 2012 taxes   Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0. Need to file 2012 taxes 1 mile as figured by the EPA. Need to file 2012 taxes Imported automobiles. Need to file 2012 taxes   The tax also applies to automobiles that do not have a prototype-based fuel economy rating assigned by the EPA. Need to file 2012 taxes An automobile imported into the United States without a certificate of conformity to United States emission standards and that has no assigned fuel economy rating must be either: Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or Modified by installation of emission control components and individually tested to demonstrate emission compliance. Need to file 2012 taxes   An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile. Need to file 2012 taxes   A fuel economy rating is not generally available for modified imported automobiles because the EPA does not require a highway fuel economy test on them. Need to file 2012 taxes A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category). Need to file 2012 taxes   For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1. Need to file 2012 taxes Exemptions. Need to file 2012 taxes   No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations. Need to file 2012 taxes However, see Vehicles not subject to tax, earlier. Need to file 2012 taxes Form 6197. Need to file 2012 taxes   Use Form 6197 to figure your tax liability for each quarter. Need to file 2012 taxes Attach Form 6197 to your Form 720 for the quarter. Need to file 2012 taxes See the Form 6197 instructions for more information and the one-time filing rules. Need to file 2012 taxes Credit or refund. Need to file 2012 taxes   If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use (see item (3) under Vehicles not subject to tax), the manufacturer can claim a credit or refund. Need to file 2012 taxes For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Need to file 2012 taxes Vaccines Tax is imposed on certain vaccines sold by the manufacturer in the United States. Need to file 2012 taxes A taxable vaccine means any of the following vaccines. Need to file 2012 taxes Any vaccine containing diphtheria toxoid. Need to file 2012 taxes Any vaccine containing tetanus toxoid. Need to file 2012 taxes Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. Need to file 2012 taxes Any vaccine containing polio virus. Need to file 2012 taxes Any vaccine against measles. Need to file 2012 taxes Any vaccine against mumps. Need to file 2012 taxes Any vaccine against rubella. Need to file 2012 taxes Any vaccine against hepatitis A. Need to file 2012 taxes Any vaccine against hepatitis B. Need to file 2012 taxes Any vaccine against chicken pox. Need to file 2012 taxes Any vaccine against rotavirus gastroenteritis. Need to file 2012 taxes Any HIB vaccine. Need to file 2012 taxes Any conjugate vaccine against streptococcus pneumoniae. Need to file 2012 taxes Any trivalent vaccine against influenza or any other vaccine against influenza. Need to file 2012 taxes Any meningococcal vaccine. Need to file 2012 taxes Any vaccine against the human papillomavirus. Need to file 2012 taxes The effective date for the tax on any vaccine against influenza, other than trivalent influenza vaccines, is the later of August 1, 2013, or the date the Secretary of Health and Human Services lists a vaccine against seasonal influenza for purposes of compensation for any vaccine-related injury or death through the Vaccine Injury Compensation Trust Fund. Need to file 2012 taxes The tax is $. Need to file 2012 taxes 75 per dose of each taxable vaccine. Need to file 2012 taxes The tax per dose on a vaccine that contains more than one taxable vaccine is $. Need to file 2012 taxes 75 times the number of taxable vaccines. Need to file 2012 taxes Taxable use. Need to file 2012 taxes   Any manufacturer (including a governmental entity) that uses a taxable vaccine before it is sold will be liable for the tax in the same manner as if the vaccine was sold by the manufacturer. Need to file 2012 taxes Credit or refund. Need to file 2012 taxes   A credit or refund (without interest) is available if the vaccine is: Returned to the person who paid the tax (other than for resale), or Destroyed. Need to file 2012 taxes The claim for a credit or refund must be filed within 6 months after the vaccine is returned or destroyed. Need to file 2012 taxes Conditions to allowance. Need to file 2012 taxes   To claim a credit or refund, the person who paid the tax must have repaid or agreed to repay the tax to the ultimate purchaser of the vaccine or obtained the written consent of such purchaser to allowance of the credit or refund. Need to file 2012 taxes Taxable Medical Devices Taxable medical devices. Need to file 2012 taxes   The tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device is 2. Need to file 2012 taxes 3% (. Need to file 2012 taxes 023) of the sales price. Need to file 2012 taxes A taxable medical device is a device that is listed as a device with the Food and Drug Administration (FDA) under section 510(j) of the Federal Food, Drug, and Cosmetic Act and 21 CFR part 807, pursuant to FDA requirements. Need to file 2012 taxes There are specific exemptions for eyeglasses, contact lenses, and hearing aids. Need to file 2012 taxes There is also an exemption for devices that are determined by the Secretary to be of a type that are generally purchased by the general public at retail for individual use (this exemption is known as the retail exemption). Need to file 2012 taxes See T. Need to file 2012 taxes D. Need to file 2012 taxes 9604 for information on how to determine whether a device falls within the retail exemption, and examples of how a taxpayer might evaluate a given device. Need to file 2012 taxes More information. Need to file 2012 taxes   For more information on the medical device tax, see section 4191, T. Need to file 2012 taxes D. Need to file 2012 taxes 9604, and Notice 2012-77. Need to file 2012 taxes You can find T. Need to file 2012 taxes D. Need to file 2012 taxes 9604 and Notice 2012-77 on pages 730 and 781, respectively, of I. Need to file 2012 taxes R. Need to file 2012 taxes B. Need to file 2012 taxes 2012-52 at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/pub/irs-irbs/irb12-52. Need to file 2012 taxes pdf. Need to file 2012 taxes Prev  Up  Next   Home   More Online Publications
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The Need To File 2012 Taxes

Need to file 2012 taxes 4. Need to file 2012 taxes   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. Need to file 2012 taxes Line of business. Need to file 2012 taxes Examples. Need to file 2012 taxes Improvement of business conditions. Need to file 2012 taxes Exception for local legislation. Need to file 2012 taxes De minimis exception. Need to file 2012 taxes Grass roots lobbying. Need to file 2012 taxes 501(c)(7) - Social and Recreation ClubsLimited membership. Need to file 2012 taxes Support. Need to file 2012 taxes Facilities open to public. Need to file 2012 taxes Gross receipts from nonmembership sources. Need to file 2012 taxes Gross receipts. Need to file 2012 taxes Nontraditional activities. Need to file 2012 taxes 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. Need to file 2012 taxes Losses and expenses. Need to file 2012 taxes Distributions of proceeds. Need to file 2012 taxes The 85% Requirement Local Life Insurance Associations Mutual or Cooperative Associations 501(c)(13) - Cemetery CompaniesBuying cemetery property. Need to file 2012 taxes Perpetual care organization. Need to file 2012 taxes Care of individual plots. Need to file 2012 taxes 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. Need to file 2012 taxes 501(c)(2) - Title-Holding Corporations for Single Parent CorporationsExpenses. Need to file 2012 taxes Waiver of payment of income. Need to file 2012 taxes 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). Need to file 2012 taxes Section 501(c)(3) organizations are covered in chapter 3 of this publication. Need to file 2012 taxes 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. Need to file 2012 taxes 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). Need to file 2012 taxes The discussion that follows describes the information you must provide when applying. Need to file 2012 taxes For application procedures, see chapter 1. Need to file 2012 taxes To qualify for exemption under section 501(c)(4), the organization's net earnings must be devoted primarily to charitable, educational, or recreational purposes. Need to file 2012 taxes In addition, no part of the organization's net earnings can inure to the benefit of any private shareholder or individual. Need to file 2012 taxes If the organization provides an excess benefit to certain persons, an excise tax may be imposed. Need to file 2012 taxes See Excise tax on excess benefit transactions , under Excess Benefit Transactions in chapter 5 for more information about this tax. Need to file 2012 taxes Examples. Need to file 2012 taxes   Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies. Need to file 2012 taxes Nonprofit operation. Need to file 2012 taxes   You must submit evidence that your organization is organized and will be operated on a nonprofit basis. Need to file 2012 taxes 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. Need to file 2012 taxes Social welfare. Need to file 2012 taxes   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). Need to file 2012 taxes   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. Need to file 2012 taxes It therefore does not qualify as a section 501(c)(4) organization. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Political activity. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes See the discussion in chapter 2 under Political Organization Income Tax Return . Need to file 2012 taxes Social or recreational activity. Need to file 2012 taxes   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). Need to file 2012 taxes Retirement benefit program. Need to file 2012 taxes   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. Need to file 2012 taxes It may qualify under another paragraph of section 501(c) depending on all the facts. Need to file 2012 taxes   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). Need to file 2012 taxes Tax treatment of donations. Need to file 2012 taxes   Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes. Need to file 2012 taxes Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. Need to file 2012 taxes They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business. Need to file 2012 taxes However, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Need to file 2012 taxes for more information. Need to file 2012 taxes For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization at IRS. Need to file 2012 taxes gov. Need to file 2012 taxes 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. Need to file 2012 taxes Volunteer fire companies. Need to file 2012 taxes   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. Need to file 2012 taxes   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). Need to file 2012 taxes In this event, your organization should file Form 1023. Need to file 2012 taxes Homeowners' associations. Need to file 2012 taxes   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. Need to file 2012 taxes The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. Need to file 2012 taxes Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes It also must show that it does not engage in exterior maintenance of private homes. Need to file 2012 taxes   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. Need to file 2012 taxes Other organizations. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. Need to file 2012 taxes Submit any additional information that may be required, as described in this section. Need to file 2012 taxes Tax treatment of donations. Need to file 2012 taxes   Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor's federal income tax return. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes In addition, no net earnings of the organization can inure to the benefit of any member. Need to file 2012 taxes Composition of membership. Need to file 2012 taxes   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. Need to file 2012 taxes You must show in your application that your organization has the purposes described in the preceding paragraph. Need to file 2012 taxes These purposes can be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization. Need to file 2012 taxes Benefits to members. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes   For more information on labor organizations, see Life Cycle of a Labor Organization at IRS. Need to file 2012 taxes gov. Need to file 2012 taxes 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. Need to file 2012 taxes For the purpose of these provisions, aquatic resources include only animal or vegetable life, but not mineral resources. Need to file 2012 taxes The term harvesting, in this case, includes fishing and related pursuits. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes The following list contains some examples of activities that show an agricultural or horticultural purpose. Need to file 2012 taxes Promoting various cooperative agricultural, horticultural, and civic activities among rural residents by a state, farm, or home bureau. Need to file 2012 taxes Exhibiting livestock, farm products, and other characteristic features of agriculture and horticulture. Need to file 2012 taxes 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. Need to file 2012 taxes Guarding the purity of a specific breed of livestock. Need to file 2012 taxes Encouraging improvements in the production of fish on privately owned fish farms. Need to file 2012 taxes Negotiating with processors for the price to be paid to members for their crops. Need to file 2012 taxes For more information on agricultural or horticultural organizations, see Life Cycle of an Agricultural or Horticultural Organization at IRS. Need to file 2012 taxes gov. Need to file 2012 taxes 501(c)(6) - Business Leagues, etc. Need to file 2012 taxes 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. Need to file 2012 taxes For a discussion of the procedure to follow, see chapter 1. Need to file 2012 taxes 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). Need to file 2012 taxes In addition, your organization must be primarily engaged in activities or functions that are the basis for its exemption. Need to file 2012 taxes It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose. Need to file 2012 taxes 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. Need to file 2012 taxes Trade associations and professional associations are considered business leagues. Need to file 2012 taxes Chamber of commerce. Need to file 2012 taxes   A chamber of commerce usually is composed of the merchants and traders of a city. Need to file 2012 taxes Board of trade. Need to file 2012 taxes   A board of trade often consists of persons engaged in similar lines of business. Need to file 2012 taxes 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. Need to file 2012 taxes   Chambers of commerce and boards of trade usually promote the common economic interests of all the commercial enterprises in a given trade community. Need to file 2012 taxes Real estate board. Need to file 2012 taxes   A real estate board consists of members interested in improving the business conditions in the real estate field. Need to file 2012 taxes It is not organized for profit and no part of the net earnings inures to the benefit of any private shareholder or individual. Need to file 2012 taxes Professional football leagues. Need to file 2012 taxes   The Internal Revenue Code specifically defines professional football leagues as exempt organizations under section 501(c)(6). Need to file 2012 taxes They are exempt whether or not they administer a pension fund for football players. Need to file 2012 taxes General purpose. Need to file 2012 taxes   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. Need to file 2012 taxes It must be shown that the conditions of a particular trade or the interests of the community will be advanced. Need to file 2012 taxes 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. Need to file 2012 taxes Line of business. Need to file 2012 taxes   This term generally refers either to an entire industry or to all components of an industry within a geographic area. Need to file 2012 taxes It does not include a group composed of businesses that market a particular brand within an industry. Need to file 2012 taxes Common business interest. Need to file 2012 taxes   A common business interest of all members of the organization must be established by the application documents. Need to file 2012 taxes Examples. Need to file 2012 taxes   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). Need to file 2012 taxes Improvement of business conditions. Need to file 2012 taxes   Generally, this must be shown to be the purpose of the organization. Need to file 2012 taxes 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. Need to file 2012 taxes Stock or commodity exchange. Need to file 2012 taxes   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). Need to file 2012 taxes Legislative activity. Need to file 2012 taxes   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. Need to file 2012 taxes Deduction not allowed for dues used for political or legislative activities. Need to file 2012 taxes   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. Need to file 2012 taxes Influencing legislation. Need to file 2012 taxes Participating or intervening in a political campaign for, or against, any candidate for public office. Need to file 2012 taxes 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). Need to file 2012 taxes Communicating directly with certain executive branch officials to try to influence their official actions or positions. Need to file 2012 taxes See Dues Used for Lobbying or Political Activities under Required Disclosures in chapter 2 for more information. Need to file 2012 taxes Exception for local legislation. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes De minimis exception. Need to file 2012 taxes   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. Need to file 2012 taxes Grass roots lobbying. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Tax treatment of donations. Need to file 2012 taxes   Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. Need to file 2012 taxes They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business. Need to file 2012 taxes   For more information on business leagues, see Life Cycle of a Business League (Trade Association) on IRS. Need to file 2012 taxes gov. Need to file 2012 taxes 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. Need to file 2012 taxes In applying for recognition of exemption, you should submit the information described in this section. Need to file 2012 taxes Also see chapter 1 for the procedures to follow. Need to file 2012 taxes 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. Need to file 2012 taxes Discrimination prohibited. Need to file 2012 taxes   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. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Private benefit prohibited. Need to file 2012 taxes   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. Need to file 2012 taxes For purposes of this requirement, it is not necessary that net earnings be actually distributed. Need to file 2012 taxes Even undistributed earnings can benefit members. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Purposes. Need to file 2012 taxes   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. Need to file 2012 taxes You must show that members are bound together by a common objective of pleasure, recreation, and other nonprofitable purposes. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes   The term other nonprofitable purposes means other purposes similar to pleasure and recreation. Need to file 2012 taxes 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. Need to file 2012 taxes Limited membership. Need to file 2012 taxes   The membership in a social club must be limited. Need to file 2012 taxes 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. Need to file 2012 taxes   A social club that issues corporate membership is dealing with the general public in the form of the corporation's employees. Need to file 2012 taxes Corporate members of a club are not the kind of members contemplated by the law. Need to file 2012 taxes Gross receipts from these members would be a factor in determining whether the club qualifies as a social club. Need to file 2012 taxes See Gross receipts from nonmembership sources , later. Need to file 2012 taxes Bona fide individual memberships paid for by a corporation would not have an effect on the gross receipts source. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Support. Need to file 2012 taxes   In general, your club should be supported solely by membership fees, dues, and assessments. Need to file 2012 taxes 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. Need to file 2012 taxes Business activities. Need to file 2012 taxes   If your club will engage in business, such as selling real estate, timber, or other products or services, it generally will be denied exemption. Need to file 2012 taxes 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. Need to file 2012 taxes Facilities open to public. Need to file 2012 taxes   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. Need to file 2012 taxes This does not mean, however, that any dealing with outsiders will automatically deprive a club of exemption. Need to file 2012 taxes Gross receipts from nonmembership sources. Need to file 2012 taxes   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. Need to file 2012 taxes Income from nontraditional business activity with members is not exempt function income, and thus is included as income from sources outside of the membership. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Gross receipts. Need to file 2012 taxes   Gross receipts, for this purpose, are receipts from the normal and usual (traditionally conducted) activities of the club. Need to file 2012 taxes These receipts include charges, admissions, membership fees, dues, assessments, investment income, and normal recurring capital gains on investments. Need to file 2012 taxes Receipts do not include initiation fees and capital contributions. Need to file 2012 taxes 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. Need to file 2012 taxes Nontraditional activities. Need to file 2012 taxes   Activities conducted by a social club need to further its exempt purposes. Need to file 2012 taxes Traditional business activities are those that further a social club's exempt purposes. Need to file 2012 taxes Nontraditional business activities do not further the exempt purposes of a social club even if conducted solely on a membership basis. Need to file 2012 taxes Nontraditional business activities are prohibited (subject to an insubstantial, trivial, and nonrecurrent test) for businesses conducted with both members and nonmembers. Need to file 2012 taxes Examples of nontraditional business activities include sale of package liquor, take-out food, and long-term room rental. Need to file 2012 taxes Fraternity foundations. Need to file 2012 taxes   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. Need to file 2012 taxes Tax treatment of donations. Need to file 2012 taxes   Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes , purposes. Need to file 2012 taxes The procedures to follow in applying for recognition of exemption are described in chapter 1. Need to file 2012 taxes 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. Need to file 2012 taxes If so, your organization need not apply for individual recognition of exemption. Need to file 2012 taxes For more information, see Group Exemption Letter in chapter 1 of this publication. Need to file 2012 taxes Tax treatment of donations. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Lodge system. Need to file 2012 taxes   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. Need to file 2012 taxes Payment of benefits. Need to file 2012 taxes   It is not essential that every member be covered by the society's program of sick, accident, or death benefits. Need to file 2012 taxes 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. Need to file 2012 taxes   The benefits must be limited to members and their dependents. Need to file 2012 taxes If members will have the ability to confer benefits to other than themselves and their dependents, exemption will not be recognized. Need to file 2012 taxes Whole-life insurance. Need to file 2012 taxes   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. Need to file 2012 taxes Reinsurance pool. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes The application and accompanying statements should establish that the organization: Is a domestic fraternal organization organized in the U. Need to file 2012 taxes S. Need to file 2012 taxes , 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. Need to file 2012 taxes The organization can arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status. Need to file 2012 taxes 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. Need to file 2012 taxes Both the application form to file and the information to provide are discussed later under the section that describes your employee association. Need to file 2012 taxes Chapter 1 describes the procedures to follow in applying for exemption. Need to file 2012 taxes Tax treatment of donations. Need to file 2012 taxes   Donations to these organizations are not deductible as charitable contributions on the donor's federal income tax return. Need to file 2012 taxes 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. Need to file 2012 taxes A local employees' association must apply for recognition of exemption by filing Form 1024. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Note. Need to file 2012 taxes 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. Need to file 2012 taxes Notice requirement. Need to file 2012 taxes   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. Need to file 2012 taxes The organization gives notice by filing Form 1024. Need to file 2012 taxes 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. Need to file 2012 taxes 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 . Need to file 2012 taxes Membership. Need to file 2012 taxes   Membership of a section 501(c)(9) organization must consist of individuals who are employees and have an employment-related common bond. Need to file 2012 taxes 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. Need to file 2012 taxes   The membership of an association can include some individuals who are not employees, provided they have an employment-related bond with the employee-members. Need to file 2012 taxes For example, the owner of a business whose employees are members of the association can be a member. Need to file 2012 taxes 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. Need to file 2012 taxes Employees. Need to file 2012 taxes   Employees include individuals who became entitled to membership because they are or were employees. Need to file 2012 taxes 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. Need to file 2012 taxes   Generally, membership is voluntary if an affirmative act is required on the part of an employee to become a member. Need to file 2012 taxes Conversely, membership is involuntary if the designation as a member is due to employee status. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Payment of benefits. Need to file 2012 taxes   The information submitted with your application must show that your organization will pay life, sick, accident, supplemental unemployment, or other similar benefits. Need to file 2012 taxes 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). Need to file 2012 taxes Benefits can be in the form of medical, clinical, or hospital services, transportation furnished for medical care, or money payments. Need to file 2012 taxes Nondiscrimination requirements. Need to file 2012 taxes   An organization that is part of a plan will not be exempt unless the plan meets certain nondiscrimination requirements. Need to file 2012 taxes 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. Need to file 2012 taxes   A plan meets the nondiscrimination requirements only if both of the following statements are true. Need to file 2012 taxes 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. Need to file 2012 taxes The benefits provided under each class of benefits do not discriminate in favor of highly compensated individuals. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes This will not apply to any increase in such payment by any plan amendment adopted after June 22, 1984. Need to file 2012 taxes   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. Need to file 2012 taxes The benefit will be considered nondiscriminatory only if it meets the nondiscrimination provision of the applicable Code section. Need to file 2012 taxes 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). Need to file 2012 taxes Excluded employees. Need to file 2012 taxes   Certain employees who are not covered by a plan can be excluded from consideration in applying these requirements. Need to file 2012 taxes 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. Need to file 2012 taxes Highly compensated individual. Need to file 2012 taxes   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. Need to file 2012 taxes Go to IRS. Need to file 2012 taxes gov, and search “Pension Plan Limitation” for the year), and Was among the top 20% of employees by compensation for the preceding year. Need to file 2012 taxes However, the employer can choose not to have (3) apply. Need to file 2012 taxes Aggregation rules. Need to file 2012 taxes   The employer can choose to treat two or more plans as one plan for purposes of meeting the nondiscrimination requirements. Need to file 2012 taxes 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. Need to file 2012 taxes Leased employees are treated as employees of the recipient. Need to file 2012 taxes One employee. Need to file 2012 taxes   A trust created to provide benefits to one employee will not qualify as a voluntary employees' beneficiary association under section 501(c)(9). Need to file 2012 taxes 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. Need to file 2012 taxes The trust must be a valid, existing trust under local law and must be evidenced by an executed document. Need to file 2012 taxes A conformed copy of the plan of which the trust is a part should be attached to the application. Need to file 2012 taxes 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. Need to file 2012 taxes Note. Need to file 2012 taxes 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. Need to file 2012 taxes Notice requirement. Need to file 2012 taxes   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. Need to file 2012 taxes The organization gives notice by filing Form 1024. Need to file 2012 taxes 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. Need to file 2012 taxes 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 . Need to file 2012 taxes Types of payments. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Diversion of funds. Need to file 2012 taxes   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). Need to file 2012 taxes Discrimination in benefits. Need to file 2012 taxes   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. Need to file 2012 taxes However, a plan is not discriminatory merely because benefits bear a uniform relationship to compensation or the rate of compensation. Need to file 2012 taxes Prohibited transactions and exemption. Need to file 2012 taxes   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. Need to file 2012 taxes It must file the claim on Form 1024. Need to file 2012 taxes The organization must include a written declaration that it will not knowingly again engage in a prohibited transaction. Need to file 2012 taxes An authorized principal officer of your organization must make this declaration under the penalties of perjury. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes For more information about the requirements for reestablishing an exemption previously denied, contact the IRS. Need to file 2012 taxes 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. Need to file 2012 taxes Benevolent life insurance associations of a purely local character and like organizations. Need to file 2012 taxes Mutual ditch or irrigation companies and like organizations. Need to file 2012 taxes Mutual or cooperative telephone companies and like organizations. Need to file 2012 taxes A like organization is an organization that performs a service comparable to that performed by any one of the above organizations. Need to file 2012 taxes The information to be provided upon application by each of these organizations is described in this section. Need to file 2012 taxes For information as to the procedures to follow in applying for exemption, see chapter 1. Need to file 2012 taxes General requirements. Need to file 2012 taxes   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. Need to file 2012 taxes They must collect at least 85% of their income from members for the sole purpose of meeting losses and expenses. Need to file 2012 taxes Mutual character. Need to file 2012 taxes   These organizations, other than benevolent life insurance associations, must be organized and operated on a mutual or cooperative basis. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes   The rights and interests of members in the annual savings of the organization must be determined in proportion to their business with the organization. Need to file 2012 taxes 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. Need to file 2012 taxes The bylaws must not provide for forfeiture of a member's rights and interest upon withdrawal or termination. Need to file 2012 taxes Membership. Need to file 2012 taxes   Membership of a mutual organization consists of those who join the organization to obtain its services, and have a voice in its management. Need to file 2012 taxes In a stock company, the stockholders are members. Need to file 2012 taxes However, a mutual life insurance organization cannot have policyholders other than its members. Need to file 2012 taxes Losses and expenses. Need to file 2012 taxes   In furnishing services substantially at cost, an organization must use its income solely for paying losses and expenses. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Distributions of proceeds. Need to file 2012 taxes   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. Need to file 2012 taxes Such distribution represents a refund in the costs of services rendered to the member. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Mutual or cooperative telephone company. Need to file 2012 taxes   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. Need to file 2012 taxes Mutual or cooperative electric company. Need to file 2012 taxes   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. Need to file 2012 taxes   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. Need to file 2012 taxes Qualified pole rental. Need to file 2012 taxes   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. Need to file 2012 taxes   The term rental, for this purpose, includes any sale of the right to use the pole (or other structure). Need to file 2012 taxes The 85% requirement is applied on the basis of an annual accounting period. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Because the 85% income test is based on gross income, capital losses cannot be used to reduce capital gains for purposes of this test. Need to file 2012 taxes Example. Need to file 2012 taxes   The books of an organization reflect the following for the calendar year. Need to file 2012 taxes 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. Need to file 2012 taxes   Voluntary contributions in the nature of gifts are not taken into account for purposes of the 85% computation. Need to file 2012 taxes   Other tax-exempt income besides gifts is considered as income received from other than members in applying the 85% test. Need to file 2012 taxes   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. Need to file 2012 taxes Tax treatment of donations. Need to file 2012 taxes   Donations to an organization described in this section are not deductible as charitable contributions on the donor's federal income tax return. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes If the activities of an organization are limited only by the borders of a state, it cannot be purely local in character. Need to file 2012 taxes 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. Need to file 2012 taxes A copy of each type of policy issued by your organization should be included with the application for recognition of exemption. Need to file 2012 taxes Organizations similar to local benevolent life insurance companies. Need to file 2012 taxes   These organizations include those that in addition to paying death benefits also provide for the payment of sick, accident, or health benefits. Need to file 2012 taxes 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. Need to file 2012 taxes Burial and funeral benefit insurance organization. Need to file 2012 taxes   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. Need to file 2012 taxes An organization that provides its benefits in the form of supplies and service is not a life insurance company. Need to file 2012 taxes Such an organization can seek recognition of exemption from federal income tax, however, as a mutual insurance company other than life. Need to file 2012 taxes 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. Need to file 2012 taxes They can serve noncontiguous areas. Need to file 2012 taxes Like organization. Need to file 2012 taxes   A like organization is a cooperative or mutual organization that performs a service similar to mutual ditch, irrigation, telephone, or electric companies. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes For the procedure to follow to file an application, see Application, Approval, and Appeal Procedures in chapter 1. Need to file 2012 taxes 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. Need to file 2012 taxes A mutual cemetery company that also engages in charitable activities, such as the burial of paupers, will be regarded as operating within this standard. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Operating a mortuary is not permitted. Need to file 2012 taxes 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. Need to file 2012 taxes How income can be used. Need to file 2012 taxes   You should show that your organization's earnings are or will be used only in one or more of the following ways. Need to file 2012 taxes To pay the ordinary and necessary expenses of operating, maintaining, and improving the cemetery or crematorium. Need to file 2012 taxes To buy cemetery property. Need to file 2012 taxes 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. Need to file 2012 taxes No part of the net earnings of your organization can inure to the benefit of any private shareholder or individual. Need to file 2012 taxes 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. Need to file 2012 taxes Buying cemetery property. Need to file 2012 taxes   Payments can be made to amortize debt incurred to buy land, but cannot be in the nature of profit distributions. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes Therefore, if property is transferred to the organization in exchange for an interest in the organization's net earnings, the organization will not