If you are on any non profit boards, make sure that they have filed the necessary reports or they may lose their non-profit status. See the information below:
Tax Spotlight
990 nonfilers to start losing exempt status
Monday is the deadline for filing Form 990 (including the e-postcard for small tax-exempt organizations) for calendar-year exempt organizations. Under filing rules enacted in 2006, it is also the day that organizations that haven't filed for three consecutive years will automatically lose their exempt status.
Showing posts with label Nonprofit. Show all posts
Showing posts with label Nonprofit. Show all posts
Saturday, May 8, 2010
Wednesday, January 27, 2010
NONPROFIT FILING REMINDER
If you are on the board of a nonprofit you should pay close attention to the attached filing reminder from the IRS. Since non-profit corporations are sometimes set up by tax protesters as a way to cheat on their income tax returns, and also since terrorist activities are sometimes funded through non-profits, these returns are being scrutinized closely by the IRS.
The IRS Reminds Tax-Exempt Organizations of All Sizes to File the Form 990 on Time to Preserve Their Tax Exempt Status.
WASHINGTON — The Internal Revenue Service today reminded tax-exempt organizations to make sure they file their annual information form on time. In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked.
The Pension Protection Act of 2006 requires that non-profit organizations that do not file a required information form for three consecutive years automatically lose their Federal tax-exempt status. This requirement has been in effect since the beginning of 2007.
A list of revoked organizations will be available to the public, as well as state charity and tax officials on this website.
If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.
Small non-profit organizations with annual receipts of $25,000 or less can file an electronic notice, Form 990-N (e-Postcard). They will need only a few basic pieces of information to file: the organization’s employer identification number, its tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.
Tax-exempt organizations with annual receipts above $25,000 are required to file the Form 990 or the Form 990-EZ annually. Private foundations file Form 990-PF. Churches and integrated auxiliaries of churches are not required to file Form 990-series returns or notices.
Form 990-series returns and e-Postcards, are due by the 15th day of the 5th month after an organization’s tax year ends.
The IRS Reminds Tax-Exempt Organizations of All Sizes to File the Form 990 on Time to Preserve Their Tax Exempt Status.
WASHINGTON — The Internal Revenue Service today reminded tax-exempt organizations to make sure they file their annual information form on time. In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked.
The Pension Protection Act of 2006 requires that non-profit organizations that do not file a required information form for three consecutive years automatically lose their Federal tax-exempt status. This requirement has been in effect since the beginning of 2007.
A list of revoked organizations will be available to the public, as well as state charity and tax officials on this website.
If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.
Small non-profit organizations with annual receipts of $25,000 or less can file an electronic notice, Form 990-N (e-Postcard). They will need only a few basic pieces of information to file: the organization’s employer identification number, its tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.
Tax-exempt organizations with annual receipts above $25,000 are required to file the Form 990 or the Form 990-EZ annually. Private foundations file Form 990-PF. Churches and integrated auxiliaries of churches are not required to file Form 990-series returns or notices.
Form 990-series returns and e-Postcards, are due by the 15th day of the 5th month after an organization’s tax year ends.
Wednesday, June 4, 2008
IF YOU ARE INVOLVED IN A NON PROFIT - TAKE NOTE
If you serve on a nonprofit’s board, you should be aware of a recent law change that could put the organization’s tax exempt status at risk. Prior to this change, most exempt organizations other than churches and their affiliated entities, were required to file an annual return with the IRS. However, entities whose average gross receipts are no more than $25,000 annually have traditionally been exempt from this requirement. Beginning in 2008, that’s no longer true.
Small tax-exempt organizations must now electronically file a notice with the IRS called Form 990-N. This new form must be completed by organizations that are exempt from filing the more complex annual returns (Forms 990, 990-EZ, 990-PF, or 990-BL) because their gross income is below the filing threshold for these returns.
Although the Form 990-N should be very easy to file (the IRS refers to it as an e-postcard because it is so short), organizations that fail to file it for three consecutive years will lose their tax exempt status. The only way to regain a tax-exemption at that point will be to spend the time and expense of reapplying to the IRS—obviously not something that anyone will want to do.
The electronic form can be accessed through the IRS website (www.irs.gov/eo, which reroutes you to a third-party vendor, Urban Institute, who handles the filings for the IRS) or by going directly to the filing website: http://epostcard.form990.org. As with the information filed by large organizations, the information reported on Form 990-N will be available for the public to see. The public can view an organization’s Form 990-Ns at http://www.irs.gov/app/ePostcard/, as well as download the entire database of Form 990-Ns.
The deadline for filing Form 990-N is the 15th day of the fifth month after an organization’s year-end. Thus, for organizations using a calendar-year, the deadline for reporting 2007 information has already come and gone. However, there are no penalties for filing late as long as you don’t miss three years in a row and jeopardize the organization’s exemption. Nonetheless, it’s important to set up procedures within the organization to make sure the annual Form 990-N is filed on a regular basis as each year’s accounting is concluded. In addition, it is now more critical than ever to adequately record the organization’s gross receipts to aid in determining whether the Form 990-N or the more robust Form 990 or 990-EZ must be filed.
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