12.3 Internal Tax Procedures
(Applicable Only in U.S.)
Exemption from Federal Income Tax.
IEEE is exempt from Federal income tax as an
organization described in Section 501(c)(3) of
the Internal Revenue Code of 1954. No
Section or other subdivision of IEEE should
apply for exemption from Federal income
tax. If any Section is requested by the
Internal Revenue Service to do so, IEEE
Headquarters should be notified immediately.
Federal Returns.
1)
Annual Information Returns - Form
990. Form 990 is the
annual information return which is
filed by organizations described in
Section 501(c)(3) of the
Internal Revenue Code of 1954. IEEE
Headquarters annually files such
a return on behalf of all its
U.S. Sections, and it is not
necessary for any Section to file an
income tax return. If any
Section is requested to file an
income tax return, on Form 990
or any other form, that Section
should advise the Internal
Revenue Service office making the
request that IEEE Headquarters
will file the necessary return on
behalf of the Section. If
any further questions are raised by
the Internal Revenue Service,
the Section should immediately
notify IEEE Headquarters.
2)
Employer Returns. If
any Section makes any payment to
an employee it will generally be
required to withhold and pay
over both Federal Income and
Federal Social Security taxes.
Consequently, any Section that
makes payments to employees will
be required to obtain and file
some or all of the forms
mentioned below. Also, in
most cases it will be necessary
to withhold and pay over certain
state taxes (e.g. income,
disability or unemployment tax).
The rules with respect to such
withholding will generally
differ from the rules applicable
to the withholding of Federal
Income taxes. The advice
of local counsel or the local
office of IEEE's Accountants
should be sought regarding the
correct procedure for the
withholding and paying over of local taxes.
(a)
Form 941.
Any Section which is
required to withhold
Federal Income or
Social Security
taxes from an
employee is required to
file a return as to
the amounts
withheld. This
return is made on
Form 941. If
Social Security taxes
are withheld it will
also be necessary to
fill out and file a
separate Schedule A
(Form 941) because it
contains the
necessary information on
wages subject to Social
Security
taxes. Form 941
must be filed and the
taxes collected must
be deposited on or
before the last day of
the month following
the close of each
calendar quarter
that is, on April
30, July 31, October
31, and January 31.
(b)
Form 501.
Each deposit of
withholding or Social
Security taxes must be
accompanied by a
properly filled-in
Form 501. Sections
which have
withholding taxes and
Social Security taxes of
under $200 per
calendar quarter are
not required to make
deposits. Instead
they will pay over the
taxes with their
quarterly Form
941. Sections with
monthly liability of
over $200 but less
than $2,000 must
deposit the taxes by
the 15th of the
following month in
the case of the
first or second
month of the quarter or
before the last day
of the following
month in the case of the
last month of the
quarter.
Sections with $2,000 or
more in liability on
the 7th, 15th, 22nd
or last day of the
month must make
deposits within
three banking days
of such dates.
Deposits are made
with the Federal
Reserve Bank which
serves the Section's
district or with a
commercial bank
authorized to accept
such deposits for
transmittal to a Federal
Reserve Bank. The
names of the
appropriate
depositaries may be
obtained at any local
bank or Federal Reserve Bank.
(c)
Forms W-2 and
W-3. If any
Section or Society is
required to withhold
Federal Income tax
or Social Security
taxes it should furnish
the correct number
of copies of the
withholding statement,
Form W-2, as
required by the
individual state, to
each employee from
whom income taxes have
been withheld or would
have been withheld
if he/she had
claimed no more than one
withholding
exemption. In
connection therewith the
Section or Society
should use the
employer identification
number specified in
Statement
12.2. Copy A of
Form W-2 together
with Form W-3 must
be filed on or
before February 28th
at the Internal
Revenue Service Center
for the appropriate
Internal Revenue
Service Region.
(d)
Form W-4.
The Section should
request each new
employee to furnish a
withholding
exemption certificate,
Form W-4, on or before
the commencement of
his or her
employment. If an
employee fails to
furnish such a
certificate, the Section
must withhold, tax
as if he or she had
claimed no withholding exemptions.
(e)
Other Information
Returns. Each
Section must file
information returns
for the calendar
year for payments made
by it during such
year which total
$600 or more to any
individual or
particular firm or
organization. If
such payments are
not subject to
withholding of Federal
Income tax and are
not reported on a
withholding statement
(Form W-2), the
Section must file Form
1099, together with Form
1096 with respect to
each such
payment. Forms
1099 and 1096 must
be filed on or
before February 28th of
the year following
the close of the
calendar year during
which payment was
made. A copy
of the Form 1099
must be given to the
person to whom the
payment was paid no
later than January
30 following the
close of the
calendar year.
State Income Tax Returns. Sections
are not necessarily exempt from state taxes and
may be required to file various state income
tax returns. Through the aid of local
counsel or the local office of IEEE's
Accountants, each Section should ascertain
whether it is complying with the applicable
state laws.
Annual Accounting. IEEE's taxable
year is the calendar year. In order for
IEEE Headquarters to be able to file reports
on behalf of all its subdivisions and to
maintain a uniform means of internal
accounting, it is necessary that each Society
or Section render a financial statement to
IEEE Headquarters at the end of each calendar
year.
