South Texas Youth Soccer Association
Tax-Exempt Organizations

Many different types of organizations may qualify for exemption from federal income taxation. The most common tax-exempt organization is a charitable organization that is exempt from income taxation under Internal Revenue Codes Section 501(c)(3). The South Texas Youth Soccer Association is a Section 501(c)(3) charitable organization. It was organized to promote soccer education, soccer training, and soccer competition.

Charitable organizations can either be publically supported or they can be private foundations. In addition to charitable organizations that are exempt under Section 501(c)(3), there are also several organizations that may qualify for exempt status if they have a socially beneficial purpose. A tax-exempt organization may still be subject to federal income tax on any business income not related to its exempt purpose. All tax-exempt organizations are subject to various reporting requirements such as annual information reporting.

Most tax-exempt organizations are required to file an annual information return with the Internal Revenue Service. For most organizations, the return is filed on or before the 15th day of the fifth month following the close of the organization's tax year on Form 990, Form 990-EZ, or Form 990-N. Tax-exempt organizations which are not required to file Form 990 or Form 990-EZ include organizations with gross receipts under $25,000. A tax-exempt organization which is not required to file Form 990 or Form 990-EZ because its gross receipts for the tax year do not exceed $25,000 is still required to file an annual information return electronically on Form 990-N.

Form 990 and Form 990-EZ require an exempt organization to provide information on its exempt and nonexempt activities. These forms require information on the finances, governance, tax compliance and compensation paid to certain individuals. Additional schedules are required to be completed depending on the activities and the type of organization. Tax-exempt organizations are required to make available for public inspection the three most recent information returns. A penalty of $20 per day is imposed by the IRS for the late filing of the Form 990 or the Form 990-EZ.

Consistent with maintaining the Association's group exemption under section 501(c) (3) of the Internal Revenue Service (IRS) Code, and as stipulated in Section 1.3.11 of the Association's Constitution, each Named Subordinate of the Association must comply with the following:

  • 7.14.1 Each calendar year between Mar. 1 and May 15, the following information must be confirmed or corrected:
    • 7.14.1.a Complete name
    • 7.14.1.b Address
    • 7.14.1.c Employer identification number (EIN)
    • 7.14.1.d Form 990 filing requirement code (Code 1 indicates annual gross receipts of over $25,000; Code 2 indicates annual gross receipts of $25,000 or less.)

  • 7.14.2 Following the close of the fiscal year of each Named Subordinate, the Association requires the following:
    • 7.14.2.a Each Code 1 Named Subordinate must submit to the State Office a copy of its last completed IRS Form 990 that has been submitted to the IRS.
    • 7.14.2.b Each Code 2 Named Subordinate must submit to the State Office a copy of its last annual financial report showing all receipts and all expenditures.
    • 7.14.3 Failure to comply with these requirements may result in the Named Subordinate being removed from the Association's list of 501(c) (3) Named Subordinates.

If you have general questions about your submission requirements with STYSA, please contact Tom Morrow at the STYSA office. For more specific tax filing questions, please contact your CPA.

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