Taxes and EIN FAQ
Although the information contained on this website is for student organizations at Texas Tech, it should not substitute any information received form the Internal Revenue Service or a Certified Public Accountant (C.P.A.).
What is an EIN?
An EIN, also known as an Employer Identification Number, is used by the IRS for tax purposes.
Can my organization use Texas Tech's EIN (Employer Identification Number)?
No, Registered organizations cannot use Texas Tech's EIN.
Does Texas Tech's tax exemption status extend to my student organization?
No, Texas Tech's exemption status does not extend to student organizations.
What can I use an EIN for?
The EIN can be used to open a bank account, file a tax return (electronically), and to make any payments to the IRS.
How can my organization apply for an EIN?
To apply for an EIN, click here. At the bottom of the page, click on Apply Online Now to get the application process started.
Is the EIN the same as my tax exempt number?
The EIN is not the same as the tax exempt number.
What if I don't know my EIN, can I apply for a new one?
If you have previously applied for an EIN, and do not know it you can contact the IRS to locate your EIN. Organizations should not apply for an EIN, if they already have one or if the organization previously had one.
Can my student organization claim tax-exempt status from the IRS?
Yes, most student organization are classified as 501(c), 501(c)7, or 501(c)8. Please see the Internal Revenue Service Website for more information regarding 501(c).
501(c) 3 "Are charitable, religious, educational, scientific, literacy, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals."
501(c) 7 "A social club must be an organization for pleasure, recreation, and other similar purposes. A club will not be recognized as tax exempt if its charter, by laws, or other government instrument, or any written policy statement provides for discrimination against any person based on race, color, or religion. A club may, however, in good faith limit its membership to members of a particular religion in order to further the teaching or principles of that religion and not to exclude individuals of a particular race or color." Click here to see more information about 501(c)7.
501(c) 8 The Internal Revenue Code does not describe what a fraternal beneficiary society, however the National Union v. Marlow court case defined what a fraternal benefit society is "A fraternal benefit society... would be whose members have adopted the same, or a very similar calling, avocation, or profession, or who are working in union to accomplish some worth object, and who for that reason have banded themselves together as an association or society to aid and assist one another, and to promote common cause." Click here to see more information.
What are the requirements to become a 501(c)(3) organization?
In order to fulfill the 501 (c)(3) requirements, organizations must fulfill the following requirements:
- An organization must not "benefit the private interests, such as the creator or the
creator's family, shareholders of the organization, other designated individuals,
or persons controlled directly or indirectly by such private interests."
- What does this mean? No net earning from the organization can benefit a member who has an "invested" interest in the organization.
- "It may attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates."
How can my organization declare tax exempt status?
It is understood that organization that have less than $5,000 in gross receipts a year, will be considered tax exempt, as long as they meet the 501(c) requirements.
If the organization has over $5,000 in gross receipts a year, and it is operated exclusively for tax exempt purposes then the organization needs to file form 1023 with the IRS.
Is my organization required to fill annually with the Internal Revenue Service?
Yes, all tax exempt organization are required to file with the IRS.
If annual receipts are less than $50,000 the 990-N form can be filled out.
If annual receipts are greater than $50,000 the 990 form must be filed.
"Gross receipts are the total amounts the organization received form all sources during its annual accounting period, without subtracting any cost or expenses."
Gross Receipts Tests are considered to be $50,000 or less if the organization:
- Has been in existence for 1 year or less and received, or donors have pledged to give, $75,000 or less during its first taxable year.
- Has been in existence between 1 and 3 years and averaged $60,000 or less in gross receipts during each of its first two tax years, and
- Is at least 3 years old and averaged $50,000 or less in gross receipts for the immediately preceding 3 tax years (including the year for which calculations are being made).