As a non-profit organization, Purdue University is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. However, to maintain this tax-exempt status, Purdue University must file an annual information return with the Internal Revenue Service (IRS). This article will guide you through the 5 steps to Purdue tax exempt form filing, ensuring that you comply with the IRS requirements and maintain the university's tax-exempt status.
Step 1: Determine the Filing Requirement
The first step is to determine whether Purdue University is required to file an annual information return. The IRS requires tax-exempt organizations to file Form 990, Form 990-EZ, or Form 990-N, depending on the organization's gross receipts and total assets. Purdue University must review its financial statements to determine which form to file.
- Form 990: Organizations with gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000 must file Form 990.
- Form 990-EZ: Organizations with gross receipts less than $200,000 and total assets less than $500,000 may file Form 990-EZ.
- Form 990-N: Organizations with gross receipts less than $50,000 may file Form 990-N.
Who is Responsible for Filing?
The responsibility for filing the tax-exempt form lies with the authorized representative of Purdue University, typically the treasurer or chief financial officer. It is essential to ensure that the authorized representative is aware of the filing requirement and the deadline.
Step 2: Gather Required Documents
To file the tax-exempt form, Purdue University must gather the required documents, including:
- Financial statements, such as the balance sheet and income statement
- Records of gross receipts and total assets
- Information about the organization's exempt purpose and activities
- Compensation and other information about officers, directors, and key employees
- Information about related organizations and subsidiaries
It is essential to ensure that all required documents are accurate and complete to avoid delays or penalties.
What are the Filing Deadlines?
The filing deadline for tax-exempt organizations is the 15th day of the 5th month after the end of the organization's accounting period. For Purdue University, which has a fiscal year ending June 30th, the filing deadline would be November 15th.
Step 3: Complete and File the Tax-Exempt Form
Once the required documents are gathered, Purdue University can complete and file the tax-exempt form. The form must be signed by the authorized representative and include all required information. Purdue University can file the form electronically through the IRS website or by mail.
What are the Penalties for Late Filing?
Failure to file the tax-exempt form on time can result in penalties, including:
- A penalty of $20 per day, up to a maximum of $10,000
- Loss of tax-exempt status if the form is not filed for three consecutive years
It is essential to ensure that the tax-exempt form is filed on time to avoid penalties and maintain the university's tax-exempt status.
Step 4: Make the Form Available to the Public
Purdue University must make the tax-exempt form available to the public for inspection and copying. The form must be made available upon request, and Purdue University may charge a reasonable fee for copying and mailing.
What are the Public Disclosure Requirements?
Purdue University must comply with the public disclosure requirements, including:
- Making the tax-exempt form available for public inspection and copying
- Providing a copy of the form to the IRS upon request
- Posting the form on the university's website
Failure to comply with the public disclosure requirements can result in penalties and loss of tax-exempt status.
Step 5: Maintain Accurate Records
Finally, Purdue University must maintain accurate records of its tax-exempt form filings, including:
- Copies of the filed forms
- Supporting documentation and records
- Proof of public disclosure
Maintaining accurate records is essential to ensure compliance with the IRS requirements and to provide a paper trail in case of an audit.
We hope this article has provided a comprehensive guide to Purdue tax exempt form filing. By following these 5 steps, Purdue University can ensure compliance with the IRS requirements and maintain its tax-exempt status.
Please comment below if you have any questions or concerns about the tax-exempt form filing process. Share this article with others who may find it useful.
FAQ Section:
What is the deadline for filing the tax-exempt form?
+The filing deadline for tax-exempt organizations is the 15th day of the 5th month after the end of the organization's accounting period.
What are the penalties for late filing?
+Failure to file the tax-exempt form on time can result in penalties, including a penalty of $20 per day, up to a maximum of $10,000, and loss of tax-exempt status if the form is not filed for three consecutive years.
What are the public disclosure requirements?
+Purdue University must make the tax-exempt form available for public inspection and copying, provide a copy of the form to the IRS upon request, and post the form on the university's website.