Section 16 – Taxes
Section 16.5 – Tax Status and Exemption
Date: 11/2/06 — Approved: Finance Board
Note: This policy is intended for the purpose of informing AS employees and other AS-related individuals about relevant tax issues. This policy does not constitute legal or tax advice. Individuals should consult with their attorneys or tax professionals for advice on personal issues.
FEDERAL TAXES
The Internal Revenue Service (IRS) has recognized the AS as exempt from federal income tax as an organization described in IRC §501(c)(3). The current IRS determination letter confirms the AS exempt status. Divisions frequently receive requests for the AS IRS determination letter from vendors and customers. This letter is often referred to as a tax exemption letter or a 501(c)(3) letter. Divisions should forward these requests to the AS Business Office.
AS divisions frequently receive requests to confirm the AS’s Employer Identification Number (EIN). This number is also frequently referred to as the Taxpayer Identification Number (TIN). All requests for the AS EIN should be referred to AS Business Office.
The AS is required to file IRS Forms 990, (Return of Organization Exempt from Income Tax), and IRS Form 990-T, (Exempt Organization Business Income Tax Return) , for unrelated business income tax.
The AS uses Form W-9, Request for Taxpayer Identification Number and Certification, for vendors and other payees to furnish a TIN and to certify that the number furnished is correct. Form W-9 is also used to obtain certifications that certain payees are not subject to backup withholding or are exempt from backup withholding. Divisions should contact the AS Accounting Department when a vendor requests a Form W-9. The AS Accounting Department will work with the division to ensure that the form is prepared and returned to the vendor.
STATE TAXES
The AS is also exempt from the State of California income tax (except for Unrelated Business Income).
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