EIN Numbers for 4-H Clubs

Updated April 01, 2009

 

The Internal Revenue Service continues to implement several changes regarding the accountability of private non-profit organizations across the nation and these changes also affect 4-H. Starting in 2009, 4-H groups/entities will be required to file the appropriate tax forms. 4-H Clubs, 4-H Councils, and other 4-H related groups need to be aware of and take action on these changes.

ACTION NEEDED: 4-H clubs and other qualified 4-H groups/entities will be required to file the appropriate tax forms with the IRS in 2009. All 4-H clubs and affiliated organizations that are eligible for the 4-H federal income tax group exemption GEN 2704, and raise funds or accept donations, must file the appropriate tax form on time even though some groups will be unsuccessful. Some groups will be unsuccessful because their EIN number may have not been certified yet by IRS.

All 4-H entities under the control of Cooperative Extension and eligible for GEN 2704 MUST file appropriately with the IRS. Under the control of Cooperative Extension means that Cooperative Extension has fiduciary responsibility for the duly authorized 4-H organization. This means that all 4-H clubs or related groups associated with the Stark-Billings County Extension Service must follow and be consistent with any local, state or federal laws which includes reporting obligations to the IRS.

IRS Filing Requirements

Qualifying Entities for inclusion under GEN 2704 are those 4-H entities that are: duly authorized 4-H clubs and affiliated 4-H organizations that areunder the control of Cooperative Extension that earn income or accept donations (the latter - for which donors want charitable giving deductions)excluding Army and Air Force clubs (because they do not handle money nor have bank accounts), and may includethose entities not earning income but for which a State 4-H Program Office has required an EIN and inclusion under GEN2704. Qualifying Entities Typically Earning $25,000 or Less File the 990-N E-Postcard

* Beginning in 2008, small tax exempt organizations needed to begin to annually file the 990-N or E-Postcard. This includes GEN 2704 subsidiaries.

* Previously communicated information regarding these organizations not being penalized for not filing the 990-N during 2008 does not extend into 2009.

* ALL eligible and qualifying organizations, which have been operating for at least one year, MUST file the 990-N on time (by the 15th day of the 5th month following the end of their tax period). For example, if the fiscal year follows the North Dakota   4-H Club Year, October 1 to September 30, your filing must be done by the 15th day of the 5th month following the end of that tax period which would be February 15th.

* Some organizations will not be successful in filing a 990-N in the near future. Reasons include that the organization is eligible for inclusion under GEN 2704, but their record is not listed under GEN 2704 with the IRS at this time.

* All organizations must keep documentation from the IRS in their files including confirmation of successful filing and documentation of unsuccessful attempts to file the 990-N.

* Note, this is not the time and place to change information about the organization, such as tax year.

* The old adage applies here, "It is better to try and fail rather than to never have tried at all."

* Instructions, forwarded on 10/2/07, for qualified entities in this income category that received IRS penalty notices for not filing in 2008 remain in effect. If you would like an additional copy of these instructions, please contact the Extension office.

Qualifying Entities Typically Earning More Than $25,000 File the 990 or  990-EZ

* There is NO CHANGE regarding the need for organizations in this income category regarding tax filing. These organizations have always needed to and must continue filing their taxes on time.

* Qualified organizations should list GEN 2704 on their tax forms, and indicate their tax exemption status as a 501(c)3 EVEN THOUGH GEN 2704 subsidiaries are not independent 501(c)3 organizations-this is the most appropriate box to check on the tax forms.

* National 4-H Headquarters, USDA cannot provide professional tax advice about filing tax forms nor alleviate penalties when 4-H subsidiaries do not follow instructions nor file properly.

Any changes to the EIN records you already submitted to the Stark-Billings Extension office should be reported as soon as possible.

Please remember:

* Independent organizations with their own tax status [such as a 501(c)3] are not eligible for inclusion under GEN 2704.

* State and county level 4-H offices (entities funded with public funds) that operate through a Land Grant Institution typically fall under the university's tax status and are not eligible for inclusion under GEN 2704.

National 4-H Headquarters continues to work with the IRS to resolve issues regarding the group exemption status and to find appropriate means for managing tax exemption lists of 4-H subsidiaries. Information regarding any changes will be shared as it becomes available.

 

For more information contact:

Kurt Froelich, Extension Agent/Stark-Billings County
(701) 456-7665

Go to Stark-Billings 4-H Youth Development Page
Go to Stark-Billings Extension Office Home Page

North Dakota State University does not discriminate on the basis of race, color, national origin, religion, sex, disability, age, Vietnam Era Veterans status, sexual orientation, marital status, or public assistance status. Direct inquiries to the Executive Director and Chief Diversity Officer, 202 Old Main, (701) 231-7708. Individuals with disabilities are invited to request reasonable accommodations to participate in NDSU-sponsored programs and events. To request an accommodation(s), please contact the Stark-Billings County Extension Office at 701/456-7665 at least ten days before the event to make arrangements.