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What Does It Mean to Be a 501(c)(5) Organization?

How Unrelated Business Income Can Jeopardize Tax-Exempt Status

05/01/2018 - (This article first appeared in the May-June 2018 issue of The American Postal Worker magazine) 

By Secretary-Treasurer Liz Powell 

IRS 501(c)(5) status provides exemption from federal income tax to labor, agricultural or horticultural organizations. APWU affiliates are 501(c)(5) organizations and provided tax-exempt status. Tax-exempt status refers to federal income tax exemption under the Internal Revenue Code. APWU locals do not pay income tax on dues collected nor taxes on the interest earned on investments. However, they must pay sales tax for purchases and payroll taxes for employees.

Mandatory IRS Report:

990s Are Due!

03/01/2016 - (This article first appeared in the March-April 2016 issue of The American Postal Worker magazine.) 

For unions, filing IRS form 990 annually is not optional! failure to submit this report could result in significant monetary penalties and revocation of our tax-exempt status.