Tax Information

U.S. Branches

Tax Exemption

ACEI's Employer Identification Number (EIN) is: 53-0204666.

ACEI is a not-for-profit organization under Section 503(c) of the Internal Revenue Code. This section affords ACEI tax exempt status. ACEI Branches in the United States that are in good standing, are tax exempt under the blanket exemption for the parent organization received from the IRS in a letter dated November 20, 1962.

For a Branch to be covered under ACEI's blanket tax exemption for the parent organization, a Branch must do the following:

File a copy of its Official Branch Constitution for All ACEI Branches with ACEI Headquarters.
Complete and send an ACEI Group Tax Exemption Letter request to be Included form (See Appendix 1), that will help ACEI obtain an Employer Identification Number from the IRS for the Branch, regardless of the fact that it employs no one.
Complete and submit to ACEI Headquarters the Annual Financial Report along with a copy of the June 30 bank statement for the current year by July 15.

Many states require additional filings for tax exempt status, check with your state government about such requirements.

In most cases, 503(c) organizations, are not obligated to pay state and local tax for purchases and services rendered, in the name of the branch. Check with your state/local tax departments if you have questions regarding local tax requirements.

Federal Tax Identification Number (SS-4)

All branches are required to obtain a Federal Tax Identification (I.D.) Number. This I.D. Number is used, for example, when opening a bank account and when filing tax returns. The form involved to obtain an I.D. Number is available from local IRS offices and is known as Form SS-4. A copy should be forwarded to ACEI Headquarters.

If you are unable to locate your branch I.D. number, ACEI has a record of these numbers for Branches that have submitted them. Call Headquarters for the missing information.

Form 990

ACEI Branches in good standing are not required to submit any tax form unless their revenue exceeds $25,000. Then they are required to submit Form 990, which is an informational form only.

If a Branch receives a Form 990 from the IRS and that Branch has not earned over $25,000, it should return the Form without filling in any figures but stating that it is under the minimum.

Branches that have not maintained the status of ACTIVE and in good standing will have to submit their own Form 990 - Return of Organization Exempt from Income Tax. The Form 990 must be filed with the IRS annually if branch gross income exceeds $25,000. In many cases branches may be able to file Form 990EZ. For copies of the forms and complete instructions look on the IRS website www.irs.gov

The deadline for filing, according to regulations, is "on or before the 15th day of the fifth month, following the close of the accounting period." If, for example, a branch's fiscal year closes on December 31, the tax return is due on or before May 15.

The form will typically be sent by the IRS to the address shown on the prior year's return. Return mailing instructions will be included.

Revenue Canada

Questions should be referred to a Problem Resolution Program coordinator. You can find the telephone number under "Revenue Canada" in the Gov't of Canada section of the telephone book.

In order to qualify for tax exempt status, the terms an association must satisfy are the following requirements which are set forth in paragraph 149(1)(1) of the Income Tax Act:

It must not, in the opinion of the Minister, be a charity.
It must be organized exclusively for social welfare, civic improvement, pleasure, recreation or any other purpose except profit.
It must in fact be operated exclusively for the same purpose in b. for which it was organized or for any of the other purposes mentioned in 2.
No part of its income may be paid, payable or otherwise made available for the personal benefit of any proprietor, member or shareholder, except in connection with the promotion of amateur athletics in Canada.

The organization will have to file the Non-Profit Organization (NPO) Information Return (Form T1044) even though it qualifies as an exempt organization if any of the following apply:

The organization received or is entitled to receive dividends, interest.
Rentals or royalties in the fiscal period totaling more than $10,000.
The total assets of the organization were more than $200,000 at the end of the immediately preceding fiscal period.
Or such a return had to be filed for a preceding fiscal period.
An organization that has to file the Non-Profit Information Return may also have to file other returns such as the T2 Corporation Income Tax Return, the T2 short, or the T3 Trust Income Tax and Information Return. The T2 Corporation Income Tax Guide, and the T3 Guide and trust Return contain information to help you file your T2 or T3 return.

For information on how you may need to file see Interpretation Bulletin IT-83, Non-Profit Organizations - Taxation of Income from Property (NPO). A non-profit organization is not required to include financial statements with the NPO return. Your organization has to file its NPO information return, without receiving notice, within six months after the end of its fiscal period. Contact "Revenue Canada" for complete details and answers to questions.

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