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Circle K IRS TaExemption


 

1.    CKI shall maintain a blankeexemptiofor all CKI clubs so that they may be considered exempt from income tax on funds acquired during the year.

2.    CKI clubs within the U.S. that have established a bank account outside the school arrequired to file IRForm 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 990-N.  NOTE:  Failure to file this return for three (3) consecutive years will result in the IRS automatically revoking club’s tax exempt status.

·         Those 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.

·         Those 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. 

Examples

If 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. 

A 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 a"employer's identification number," it must be submitted to the CKI Office. This information can be emailed to finance@kiwanis.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 owregisterenumber.