Federal Income Tax

Registration with and official recognition by Baylor University as a chartered student organization does not exempt a student organization from paying federal income tax, nor does it allow the student organization to share in the University’s tax exempt status. If the student organization is a chapter of a larger national organization, the student organization should check with the parent organization to determine if it is covered by the parent organization’s tax-exempt status and able to use the parent organization’s tax exempt identification number.

A student organization may wish to apply for tax-exempt status as to federal income tax; however, applying for such exemption is a complex and very technical process. Should the organization decide to apply for tax-exempt status, the following publication and forms should be referenced: Publication 557, Form 1023, and Form 1024, on the Internal Revenue Service (IRS) website at www.irs.gov. As procedures and laws constantly change, a student organization should consider consulting an attorney specializing in this area if it wishes to apply for tax-exempt status.