Tax and Financial Responsibilities – U.S.

Secretary-Treasurer Resources

In This Section

  • Fiduciary Responsibilities: Locals in the United States should be aware of their forms 990 (IRS) and LM (DOL) filing requirements.
  • Understanding the Life Cycle of a Labor Organization
  • Record Keeping Requirements:
    • Starting a Business, Keeping Records, IRS Publication 583
    • Recording Business Expenses, IRS Pub 535
  • Understand Critical Tax Distinctions:
    • Accountable vs. Non-Accountable Expense Plans, IRS Pub 535, Chapter 11
      (Note: this determines treatment of per diem payments)
    • Independent Contractors vs. Employees
  • Budget Your Events
  • Receiving Contributions as a 501(c)(5)
  • Establishing a separate 501(c)(3) charitable organization
  • Filing the Department of Labor’s LM reports
  • Annual reporting to Independent Contractors and Employees
    • Employees receive: Form W-2
    • Independent Contractors receive: Form 1099-Misc

Tax Reporting – Business

As secretary-treasurers seek compliance with authoritative regulations, they must be aware of federal, state and local laws. Contact your state’s Department of Revenue and consult with a local CPA for your relevant state and local laws.

IAFF Locals’ 501(c)(5) Tax Exemption

Guidance for Locals That Have Lost Tax-Exempt Status
IAFF affiliates were notified in September 2010 that the three-year 990 compliance grace period for 501(c)(5) organizations was due to expire on October 15, 2010. Since then, the Internal Revenue Service (IRS) has published a list of organizations whose tax-exempt status has been revoked for failing to meet their filing requirement.

To check your local’s tax exempt status or find your Employer Identification Number with the IRS, please click here.

  • Reinstatement Guidance
    • IRS’ official guidance, RP 2014-11 (identify your situation in SECTION 1):
    • For a summary of the publication, use this RP 2014-11 Summary
    • Forms that need to be filed:
      • Application for reinstatement, Form 1024
      • User Fee, Form 8718
      • File all required 990 or 990-EZ returns (if applicable)
    • Write (a) “Revenue Procedure 2014-11” and (b) either “Streamlined Reinstatement” or “Retroactive Reinstatement” [as applicable] at the top of your Form 1024 application to ensure proper processing. For a sample form, Click Here (IMPORTANT NOTE: this sample form is for a very basic organization; your situation may differ, and answers should be adjusted accordingly).
    • Pay the applicable Processing Fee on Form 8718 – $600.
    • The IAFF recommends that affiliates consult with a tax advisor or legal counsel for additional information on the reinstatement process.

Annual Tax Filing
Prospectively, affiliates whose annual receipts are typically $50,000 or less (for years after 2010) are eligible to submit an annual electronic notice (Form 990-N) after their application for reinstatement of tax-exempt status has been approved. Whether your local files the Form 990, Form 990-EZ or the Form 990-N e-postcard, be advised that the filing must be done annually.

  • Payroll, Employer’s Tax Guide, IRS Pub 15
    • Supplemental Tax Guide, IRS Pub 15-A
    • Tax Guide to Fringe Benefits, IRS Pub 15-B
    • Taxable Fringe Benefits, IRS Pub 5137
    • Taxable and Nontaxable Income, IRS Pub 525
    • Per Diem Rates, IRS Pub 1542
    • Recordkeeping timetable

Filing the Annual Form 990

Unrelated Business Income Tax

Tax Reporting – Individual

Since the local’s tax reporting practices directly influence the individual Employees’ and Independent Contractors’ tax reporting, below is a condensed list of resources. Every individual in the United States is responsible for his/her own tax records, and for seeking guidance on unclear items. Please note that state and local tax regulations and obligations may also apply.

  • Annual filing of IRS Form 1040
  • Business Travel Expenses (IRS Topic 511)
  • Miscellaneous Expenses (IRS Topic 508)