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Tax Return Filing Requirements

All AMA professional chapters located in the United States are required to file an annual tax return with the IRS, even if they do not owe taxes.

If a chapter is located outside the U.S., the chapter must comply with the filing requirements in its country/territory/local jurisdiction.

IRS Forms 990, 990-EZ, and 990-N (Nonprofit Tax Return)

IRS Form 990 is the tax return used by nonprofit organizations in the U.S.  By November 15 each year, U.S. chapters should file either IRS Form 990, Form 990-EZ, or Form 990-N (depending on average annual revenues) for the AMA tax year (fiscal year) ending June 30. 

In adherence with AMA chapter mandatory reporting requirements, U.S. chapters must notify the AMA Support Center once its annual tax return has been filed with the IRS via Professional Chapter Reporting Requirements.

Significant financial penalties can be incurred for failure to file a timely tax return with the IRS. In addition, a chapter that has failed to file an annual 990-series return or notice for three consecutive years will automatically lose its tax-exempt status with the IRS. If a chapter loses its tax-exempt status, that chapter may need to pay federal income taxes and can no longer receive tax-deductible charitable contributions as an IRS 501(c)(3) charitable organization. That chapter will no longer qualify to be included under the group ruling for the AMA and must apply for its own non-profit status. See Professional Chapter Nonprofit Incorporation and Tax Exemption for more information.

IRS Form 990-T (Unrelated Business Income)

A nonprofit organization with unrelated business income greater than $1,000 must file IRS Form 990-T by November 15. 

Unrelated business income is income derived from an unrelated activity to the exempt (i.e., educational) purpose of the organization. 

Examples of unrelated business income:

  • Job boards
  • Banner ads
  • Newsletter advertising
  • Paid email advertising
  • Selling merchandise (e.g., t-shirts)

These income types are “unrelated” because the AMA has an educational mission, and these activities are not inherently educational in nature.  An exact determination of what activity is “unrelated” can be complex, and the IRS has issued various guidance on this topic over the years.  

If a chapter has questions about such activity, it may wish to seek advice from a local accountant.  

IRS Form 1120 (Incorporated but Not Tax Exempt)

While unusual, U.S. chapters that are incorporated and do not wish to be under IRS tax code section 501(c)(3) for tax-exempt status must complete IRS Form 1120 by November 15. The tax rate on taxable income up to $50,000 is 15%, increasing from there.