The parent and subordinate organizations of each group exemption ruling must agree on their filing responsibilities. If the parent chooses to file a group return for some or all of its subordinate organizations, and those subordinate organizations agree to be included, then the subordinate organizations should not file their own separate returns. However, if a subordinate organization is not included in a group return, then it must file its own return unless it meets another exception to the filing requirements.
Exempt Organizations – Required Filings
Although they are exempt from income taxation, exempt organizations are generally required to file annual returns of their income and expenses with the Internal Revenue Service. If an organization has unrelated business income, it must file an unrelated business income tax return. In addition to filing an annual exempt organization return, exempt organizations may be required to file other returns and pay employment taxes. Some organizations may be required to file certain returns electronically.
Publication 4573, Group Exemptions
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.