K IRS Tax Exemption
1. CKI shall maintain a blanket exemption for all CKI clubs so that they may be considered exempt from income
tax on funds acquired during
2. CKI clubs within
the U.S. that have established
a bank account outside the school are required to file IRS Form 990 (Return of Organization Exempt from Income Tax) with the appropriate
IRS Center. To open a bank account, an EIN is
required. Circle K clubs whose funds are
kept and maintained in a student activity account within the school are not
required to file a 990 return or obtained an EIN. Clubs that have obtained an EIN and reported
it to CKI will be covered under the blanket of CKI. Clubs funds in a student activity account
with the school are covered under the school’s blanket.
3. The appropriate 990 form to file is as follows:
Small, tax-exempt organizations whose gross receipts normally
are US$50,000 or less are required to file the IRS’ electronic postcard Form
NOTE: Failure to file this return for
three (3) consecutive years will result in the IRS automatically revoking
club’s tax exempt status.
whose gross receipts normally exceed US$50,000 to US$200,000 are required to
file Form 990-EZ.
Daily penalty fees will apply if filing after deadline, unless extension
was granted by the IRS.
with gross receipts greater than $200,000 must file Form
990. Daily penalty fees will apply if filing after
deadline, unless extension was granted by the IRS.
Deadline to file a return is the 15th day of the 5th
month after the end of a tax period.
a club's is operating with a fiscal year-end of September 30, the deadline to
file will be February 15th of the following year.
If a club has a
calendar year-end of December 31, the deadline is May 15 of the following year.
return can only be filed after the end of tax period and no later than the 15th
day of the 5th month. Depending
on the type of return the club is eligible to file (see item #3), filing late
can result in paying daily late fees or losing the club’s tax exempt
status. Process to be reinstated will
result in completing a 20 page IRS 1024 application and paying fees of $400 or
more. Clubs will be subject to federal
income tax if the club fails to get their tax exempt status reinstated.
4. A club cannot file
a return without an Employer Identification number (EIN). To obtain an
EIN, please visit the IRS website (www.irs.gov) and download, print and mail completed
SS-4 Form (Application for EIN) to the appropriate IRS Center or you can visit www.irs.gov and receive a
number within minutes after completing the online application.
5. After the club is assigned an "employer's identification number," it must be
submitted to the CKI Office. This
information can be emailed to firstname.lastname@example.org
or fax to 317-217-6553. Local Kiwanis clubs
can help in securing
and completing the necessary forms.
The CKI club, as far
as the Circle K International
exemption is concerned, cannot substitute
a school employer's identification number in place of securing
its own registered number.