Definition & Meaning of the 2015 Form 990 or 990-EZ (Schedule C)
The 2015 Form 990 or 990-EZ (Schedule C) is essential for tax-exempt organizations, such as charities, to comply with IRS rules regarding political campaign and lobbying activities. It serves to report these activities and expenditures, ensuring transparency and accountability in their political involvement. Organizations must accurately disclose their political expenditures, volunteer hours, and lobbying activities to maintain their tax-exempt status. This form is specifically designed for entities exempt under sections 501(c) and 527, which include social welfare organizations and political organizations.
Key Elements of the 2015 Form 990 or 990-EZ (Schedule C)
- Political Campaign Expenditures: Organizations must report any funds used for political campaigns, including monetary donations and in-kind contributions.
- Lobbying Expenditures: This section requires detailed reporting of expenses related to lobbying activities, making it crucial for organizations engaged in advocacy.
- Volunteer Hours: Organizations are required to track and report volunteer hours dedicated to lobbying efforts or political activities.
- Excise Taxes: The form outlines any applicable excise taxes related to political activities, which organizations must calculate and report.
- Compliance Information: Schedule C serves to ensure organizations are adhering to IRS regulations that govern their political engagements.
This comprehensive documentation helps the IRS evaluate whether organizations remain compliant with the legal standards set for tax-exempt entities involved in political activities.
Steps to Complete the 2015 Form 990 or 990-EZ (Schedule C)
Completing Schedule C requires a systematic approach to accurately report the required information. This includes filing sections specific to political expenditures and lobbying efforts.
- Gather Necessary Information: Compile all financial records relevant to political contributions, lobbying expenses, and volunteer activities. This ensures accurate reporting of figures.
- Fill Out Basic Organization Information: Begin the form by providing the organization's name, address, and Employer Identification Number (EIN) at the top.
- Report Political Campaign Expenditures: Document any funds spent in support of or opposing candidates. Include both cash and in-kind contributions in the appropriate sections.
- Detail Lobbying Activities: Clearly outline expenditures related to lobbying efforts, differentiating between direct lobbying (communications with legislators) and grassroots lobbying (mobilization of the public).
- Disclose Volunteer Contributions: Track and report the total hours volunteered for political activities. This information is essential for recognizing the non-monetary contributions to political campaigns.
- Review and Submit: After completing the form, review all entries for accuracy. Submit the completed Schedule C along with Form 990 or 990-EZ via the appropriate method.
Following these steps ensures diligent compliance with IRS requirements and aids in safeguarding the organization’s tax-exempt status.
Important Terms Related to the 2015 Form 990 or 990-EZ (Schedule C)
Understanding key terms associated with Schedule C is crucial for accurate reporting and compliance. Here are some essential definitions:
- Tax-Exempt Organization: A nonprofit entity that does not pay federal income tax due to its charitable purpose, as defined under IRS sections 501(c) and 527.
- Political Expenditure: Any financial contribution made to support or oppose political candidates or parties, requiring transparent reporting on the form.
- Lobbying: Activities aimed at influencing legislation or policy decisions, encompassing both direct communications with legislators and public advocacy.
- Voluntary Hours: Time contributed by individuals on behalf of the organization to assist with political efforts, which must be documented and reported.
- Excise Tax: A tax imposed on certain activities, such as political spending, which the organization must calculate if applicable.
Familiarity with these terms will streamline the completion and enhance an organization’s understanding of its obligations regarding political activities.
IRS Guidelines for Using the 2015 Form 990 or 990-EZ (Schedule C)
The IRS provides specific guidelines to assist organizations in completing Schedule C accurately. Adhering to these guidelines is crucial for maintaining compliance and avoiding penalties.
- Filing Requirements: Organizations must file Schedule C if they engage in political campaign activity or lobbying. Failure to comply can result in penalties.
- Recordkeeping Obligations: The IRS mandates that organizations maintain detailed records of all political expenditures and volunteer hours for a minimum of three years from the date of filing.
- Compliance with State Laws: In addition to federal regulations, organizations must also comply with state-specific laws regarding campaign finance and lobbying disclosures.
- Changes in Tax Law: Organizations need to stay informed about potential changes in tax law that may affect their filing requirements or the definitions of political activities.
Organizations can refer to the IRS website or consult tax professionals for up-to-date guidance and aid in proper form completion.
Filing Deadlines for the 2015 Form 990 or 990-EZ (Schedule C)
Understanding the deadlines for filing Schedule C is critical for organizations to remain in compliance:
- Annual Filing Deadline: Most organizations must file their Form 990 or 990-EZ, along with Schedule C, by the 15th day of the 5th month after the close of their fiscal year. For organizations following the calendar year, this means the deadline is May 15.
- Extended Filing Options: Organizations may file for an extension, allowing for an additional six months to prepare their forms. An extension must be filed by the original due date of the return.
- Penalties for Late Filing: Failing to meet the deadline can result in financial penalties imposed by the IRS. Organizations should prioritize timely submission to avoid incurring these charges.
Being aware of these deadlines is essential for proper planning and compliance, ensuring that all relevant information is reported accurately and punctually.
