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ExpressTaxExempt Blog

Tuesday, December 13, 2016

Group Returns for Exempt Organizations

Exempt organizations that are considered a central or parent company can file a group return with IRS Form 990 for two or more secondary or local tax-exempt organizations.

In some cases, the IRS may require the central organization to file a 990 form for itself by submitting a separate return outside of the group filing.

Subordinate Organizations
A subordinate organization can be included in a group return only if it is

  • Affiliated with the parent organization during the time its tax period ends
  • Subject to the parent organization's general supervision or control
  • Exempt from tax under a group exemption letter that's currently in effect
  • Utilizes the same tax year period as the parent organization

Each subordinate organization must annually authorize the central organization in writing to include it within the group return. It is also responsible for declaring that the information submitted to the group is accurate and complete.

Group Exemption Number
Subordinate organizations have the option to file a separate IRS 990 return on its own; however, it must still indicate that it’s involved in a group exemption. The IRS requires a 4-digit group exemption number (GEN), and group exemption name from each organization included in a group exemption.

If there are any changes to a group exemption ruling, the parent or central organization should submit an annual information update that’s required to maintain its group exemption ruling - this is a separate form not included with your 990 filing.

Group Returns with ExpressTaxExempt
Our easy-to-use service asks for your group exemption information near the beginning of the e-filing process. If you’re the central or parent organization, you can quickly and easily list all of your subordinate organizations which we'll correctly generate on your 990 form.

For any questions or assistance with e-filing a group return, or an IRS 990 series form in general, contact our U.S -based customer support team located in Rock Hill, South Carolina. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or reach us through email with support@ExpressTaxExempt.com.


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