How to File a Tax Return for a 501(c)(7)

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Some organizations or social clubs qualify for a 501(c)(7) corporation status with the IRS. When granted that status, these nonprofit corporations are then exempt from certain federal taxes. However, there are still requirements regarding what to file with the IRS when tax time comes around. Failing to comply can result in significant fines, so be sure to carefully follow directions.

Things You'll Need

  • Amount of gross revenue or gross receipts
  • Form 990 (Form 990-EZ or Form 990-N)
  • Employer Identification Number (EIN)
  • Breakdown of revenue and expenses
  • Information regarding governing body and employees
  • Determine the gross revenue or gross receipts of your nonprofit organization. Gross receipts includes revenue from traditional activities of your club, which might be membership fees, dues, investment income and more. This is an extremely important step since it will tell you which form you are required to submit.

  • Choose the correct IRS form depending on your calculated gross receipts. If the number comes to over $25,000 for the year, your organization must fill it out a Form 990 or Form 990-EZ. If the organization's gross receipts amounts to less than $25,000, it can choose to file the annual electronic notice Form 990-N online. This is also referred to as an e-Postcard by the IRS. All of these forms can be accessed on IRS.gov.

  • Gather the required information for the form you fill out. You'll need a bit more detail for Form 990 or Form 990-EZ including the Employer Identification Number (EIN), detailed breakdown of the organization's revenue and expenses, and information about the organization's governing body, employees, etc. The e-Postcard basically only requires the EIN, legal name and mailing address, information about a principal officer, and confirmation that the gross receipts were less than $25,000.

  • Follow the detailed instructions for the Form 990 or 990-EZ or complete the electronic form for the e-Postcard or Form 990-N. Written instructions for the 990 or 990-EZ can be found online at IRS.gov, or you can follow the IRS' official link to the e-Postcard form.

  • File all information before the deadline to avoid penalties or required explanations. These forms are due each year by the 15th day of the fifth month after your tax year has ended. Failing to file them on time means that you will have to include a statement explaining your reason. Not filing at all will result in hefty fees that will add up quickly over time.

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