26 U.S.C. § 6033 : US Code - Section 6033: Returns by exempt organizations

Search 26 U.S.C. § 6033 : US Code - Section 6033: Returns by exempt organizations

(a) Organizations required to file
(1) In general
Except as provided in paragraph (2), every organization exempt
from taxation under section 501(a) shall file an annual return,
stating specifically the items of gross income, receipts, and
disbursements, and such other information for the purpose of
carrying out the internal revenue laws as the Secretary may by
forms or regulations prescribe, and shall keep such records,
render under oath such statements, make such other returns, and
comply with such rules and regulations as the Secretary may from
time to time prescribe; except that, in the discretion of the
Secretary, any organization described in section 401(a) may be
relieved from stating in its return any information which is
reported in returns filed by the employer which established such
organization.
(2) Exceptions from filing
(A) Mandatory exceptions
Paragraph (1) shall not apply to -
(i) churches, their integrated auxiliaries, and conventions
or associations of churches,
(ii) any organization (other than a private foundation, as
defined in section 509(a)) described in subparagraph (C), the
gross receipts of which in each taxable year are normally not
more than $5,000, or
(iii) the exclusively religious activities of any religious
order.
(B) Discretionary exceptions
The Secretary may relieve any organization required under
paragraph (1) to file an information return from filing such a
return where he determines that such filing is not necessary to
the efficient administration of the internal revenue laws.
(C) Certain organizations
The organizations referred to in subparagraph (A)(ii) are -
(i) a religious organization described in section
501(c)(3);
(ii) an educational organization described in section
170(b)(1)(A)(ii);
(iii) a charitable organization, or an organization for the
prevention of cruelty to children or animals, described in
section 501(c)(3), if such organization is supported, in
whole or in part, by funds contributed by the United States
or any State or political subdivision thereof, or is
primarily supported by contributions of the general public;
(iv) an organization described in section 501(c)(3), if
such organization is operated, supervised, or controlled by
or in connection with a religious organization described in
clause (i);
(v) an organization described in section 501(c)(8); and
(vi) an organization described in section 501(c)(1), if
such organization is a corporation wholly owned by the United
States or any agency or instrumentality thereof, or a wholly-
owned subsidiary of such a corporation.
(b) Certain organizations described in section 501(c)(3)
Every organization described in section 501(c)(3) which is
subject to the requirements of subsection (a) shall furnish
annually information, at such time and in such manner as the
Secretary may by forms or regulations prescribe, setting forth -
(1) its gross income for the year,
(2) its expenses attributable to such income and incurred
within the year,
(3) its disbursements within the year for the purposes for
which it is exempt,
(4) a balance sheet showing its assets, liabilities, and net
worth as of the beginning of such year,
(5) the total of the contributions and gifts received by it
during the year, and the names and addresses of all substantial
contributors,
(6) the names and addresses of its foundation managers (within
the meaning of section 4946(b)(1)) and highly compensated
employees,
(7) the compensation and other payments made during the year to
each individual described in paragraph (6),
(8) in the case of an organization with respect to which an
election under section 501(h) is effective for the taxable year,
the following amounts for such organization for such taxable
year:
(A) the lobbying expenditures (as defined in section
4911(c)(1)),
(B) the lobbying nontaxable amount (as defined in section
4911(c)(2)),
(C) the grass roots expenditures (as defined in section
4911(c)(3)), and
(D) the grass roots nontaxable amount (as defined in section
4911(c)(4)),
(9) such other information with respect to direct or indirect
transfers to, and other direct or indirect transactions and
relationships with, other organizations described in section
501(c) (other than paragraph (3) thereof) or section 527 as the
Secretary may require to prevent -
(A) diversion of funds from the organization's exempt
purpose, or
(B) misallocation of revenues or expenses,
(10) the respective amounts (if any) of the taxes imposed on
the organization, or any organization manager of the
organization, during the taxable year under any of the following
provisions (and the respective amounts (if any) of reimbursements
paid by the organization during the taxable year with respect to
taxes imposed on any such organization manager under any of such
provisions):
(A) section 4911 (relating to tax on excess expenditures to
influence legislation),
(B) section 4912 (relating to tax on disqualifying lobbying
expenditures of certain organizations), and
(C) section 4955 (relating to taxes on political expenditures
of section 501(c)(3) organizations), except to the extent that,
by reason of section 4962, the taxes imposed under such section
are not required to be paid or are credited or refunded,
(11) the respective amounts (if any) of -
(A) the taxes imposed with respect to the organization on any
organization manager, or any disqualified person, during the
taxable year under section 4958 (relating to taxes on private
excess benefit from certain charitable organizations), and
(B) reimbursements paid by the organization during the
taxable year with respect to taxes imposed under such section,
except to the extent that, by reason of section 4962, the taxes
imposed under such section are not required to be paid or are
credited or refunded,
(12) such information as the Secretary may require with respect
to any excess benefit transaction (as defined in section 4958),
(13) such information with respect to disqualified persons as
the Secretary may prescribe, and
(14) such other information for purposes of carrying out the
internal revenue laws as the Secretary may require.
For purposes of paragraph (8), if section 4911(f) applies to the
organization for the taxable year, such organization shall furnish
the amounts with respect to the affiliated group as well as with
respect to such organization.
(c) Additional provisions relating to private foundations
In the case of an organization which is a private foundation
(within the meaning of section 509(a)) -
(1) the Secretary shall by regulations provide that the private
foundation shall include in its annual return under this section
such information (not required to be furnished by subsection (b)
or the forms or regulations prescribed thereunder) as would have
been required to be furnished under section 6056 (relating to
annual reports by private foundations) as such section 6056 was
in effect on January 1, 1979, and
(2) the foundation managers shall furnish copies of the annual
return under this section to such State officials, at such times,
and under such conditions, as the Secretary may by regulations
prescribe.
Nothing in paragraph (1) shall require the inclusion of the name
and address of any recipient (other than a disqualified person
within the meaning of section 4946) of 1 or more charitable gifts
or grants made by the foundation to such recipient as an indigent
or needy person if the aggregate of such gifts or grants made by
the foundation to such recipient during the year does not exceed
$1,000.
(d) Section to apply to nonexempt charitable trusts and nonexempt
private foundations
The following organizations shall comply with the requirements of
this section in the same manner as organizations described in
section 501(c)(3) which are exempt from tax under section 501(a):
(1) Nonexempt charitable trusts
A trust described in section 4947(a)(1) (relating to nonexempt
charitable trusts).
(2) Nonexempt private foundations
A private foundation which is not exempt from tax under section
501(a).
(e) Special rules relating to lobbying activities
(1) Reporting requirements
(A) In general
If this subsection applies to an organization for any taxable
year, such organization -
(i) shall include on any return required to be filed under
subsection (a) for such year information setting forth the
total expenditures of the organization to which section
162(e)(1) applies and the total amount of the dues or other
similar amounts paid to the organization to which such
expenditures are allocable, and
(ii) except as provided in paragraphs (2)(A)(i) and (3),
shall, at the time of assessment or payment of such dues or
other similar amounts, provide notice to each person making
such payment which contains a reasonable estimate of the
portion of such dues or other similar amounts to which such
expenditures are so allocable.
(B) Organizations to which subsection applies
(i) In general
This subsection shall apply to any organization which is
exempt from taxation under section 501 other than an
organization described in section 501(c)(3).
(ii) Special rule for in-house expenditures
This subsection shall not apply to the in-house
expenditures (within the meaning of section 162(e)(5)(B)(ii))
of an organization for a taxable year if such expenditures do
not exceed $2,000. In determining whether a taxpayer exceeds
the $2,000 limit under this clause, there shall not be taken
into account overhead costs otherwise allocable to activities
described in subparagraphs (A) and (D) of section 162(e)(1).
(iii) Coordination with section 527(f)
This subsection shall not apply to any amount on which tax
is imposed by reason of section 527(f).
(C) Allocation
For purposes of this paragraph -
(i) In general
Expenditures to which section 162(e)(1) applies shall be
treated as paid out of dues or other similar amounts to the
extent thereof.
(ii) Carryover of lobbying expenditures in excess of dues
If expenditures to which section 162(e)(1) applies exceed
the dues or other similar amounts for any taxable year, such
excess shall be treated as expenditures to which section
162(e)(1) applies which are paid or incurred by the
organization during the following taxable year.
(2) Tax imposed where organization does not notify
(A) In general
If an organization -
(i) elects not to provide the notices described in
paragraph (1)(A) for any taxable year, or
(ii) fails to include in such notices the amount allocable
to expenditures to which section 162(e)(1) applies
(determined on the basis of actual amounts rather than the
reasonable estimates under paragraph (1)(A)(ii)),
then there is hereby imposed on such organization for such
taxable year a tax in an amount equal to the product of the
highest rate of tax imposed by section 11 for the taxable year
and the aggregate amount not included in such notices by reason
of such election or failure.
(B) Waiver where future adjustments made
The Secretary may waive the tax imposed by subparagraph
(A)(ii) for any taxable year if the organization agrees to
adjust its estimates under paragraph (1)(A)(ii) for the
following taxable year to correct any failures.
(C) Tax treated as income tax
For purposes of this title, the tax imposed by subparagraph
(A) shall be treated in the same manner as a tax imposed by
chapter 1 (relating to income taxes).
(3) Exception where dues generally nondeductible
Paragraph (1)(A) shall not apply to an organization which
establishes to the satisfaction of the Secretary that
substantially all of the dues or other similar amounts paid by
persons to such organization are not deductible without regard to
section 162(e).
(f) Certain organizations described in section 501(c)(4)
Every organization described in section 501(c)(4) which is
subject to the requirements of subsection (a) shall include on the
return required under subsection (a) the information referred to in
paragraphs (11), (12) and (13) of subsection (b) with respect to
such organization.
(g) Returns required by political organizations
(1) In general
This section shall apply to a political organization (as
defined by section 527(e)(1)) which has gross receipts of $25,000
or more for the taxable year. In the case of a political
organization which is a qualified State or local political
organization (as defined in section 527(e)(5)), the preceding
sentence shall be applied by substituting "$100,000" for
"$25,000".
(2) Annual returns
Political organizations described in paragraph (1) shall file
an annual return -
(A) containing the information required, and complying with
the other requirements, under subsection (a)(1) for
organizations exempt from taxation under section 501(a), with
such modifications as the Secretary considers appropriate to
require only information which is necessary for the purposes of
carrying out section 527, and
(B) containing such other information as the Secretary deems
necessary to carry out the provisions of this subsection.
(3) Mandatory exceptions from filing
Paragraph (2) shall not apply to an organization -
(A) which is a State or local committee of a political party,
or political committee of a State or local candidate,
(B) which is a caucus or association of State or local
officials,
(C) which is an authorized committee (as defined in section
301(6) of the Federal Election Campaign Act of 1971) of a
candidate for Federal office,
(D) which is a national committee (as defined in section
301(14) of the Federal Election Campaign Act of 1971) of a
political party,
(E) which is a United States House of Representatives or
United States Senate campaign committee of a political party
committee,
(F) which is required to report under the Federal Election
Campaign Act of 1971 as a political committee (as defined in
section 301(4) of such Act), or
(G) to which section 527 applies for the taxable year solely
by reason of subsection (f)(1) of such section.
(4) Discretionary exception
The Secretary may relieve any organization required under
paragraph (2) to file an information return from filing such a
return if the Secretary determines that such filing is not
necessary to the efficient administration of the internal revenue
laws.
(h) Cross references
For provisions relating to statements, etc., regarding exempt
status of organizations, see section 6001.
For reporting requirements as to certain liquidations,
dissolutions, terminations, and contractions, see section
6043(b). For provisions relating to penalties for failure to
file a return required by this section, see section 6652(c).
For provisions relating to information required in connection
with certain plans of deferred compensation, see section 6058.