Last Chance to File Form 990 is Oct 15 - Does Your Organization Need To File?
Beginning in 2008, all non-profit organizations were required by the IRS to file annual reports. In the past, groups with annual revenues greater than $25,000 has always been required to file Form 990, but now even organizations with smaller budgets must file Form 990-N, a simple informational postcard, to register with the IRS. Failure to meet the annual reporting requirements for three consecutive years will result in the immediate revocation of the organization's tax exemption.
The form was due earlier in the year, but in response to the massive number of small organizations subject to revocation, the IRS announced a special filing extension for organizations needing to file the 990-N e-postcard until Friday, October 15, 2010.
Does your lake organization need to worry about this deadline? Here are some answers to frequently asked questions:
My lake organization is organized as a lake district. Does the rule apply to my group?
No. A lake district is organized as a unit of government, not a non-profit corporation. The 990 filing requirement only applies to groups governed by section 501 of the Internal Revenue Code (usually a 501(c)3 organization).
My lake organization has averaged less than $25,000 in revenue over the last three years. We've never filed Form 990 before - do we need to now?
Yes, you'll need to file form 990-N. This is the new form for groups with low revenue.
My lake organization has less than $5,000 in revenue annually and is not required to apply for a tax-exemption with the IRS. Do we need to file form 990-N?
Yes. According to the IRS, "certain organizations do not have to apply for tax exemption by still have an e-Postcard filing requirement. If your organization did not file an application for exemption because it is a section 501(c)3 organization whose gross receipts in each taxable year are normally not more than $5,000 or because it is exempt under another Code section, such as 501(c)4, an officer of the organization should call Customer Account Services at 1-877-829-5500 and ask that the organization be set up to allow filing of the e-Postcard."
Helpful links on the subject:
For a short article from Attys. Jeff Storch and Madelyn Leopold of the Boardman Law Firm in Madison describing the new requirements in more detail, click here.
To view the IRS pages on the filing relief for the new requirements, read FAQs on the matter, and get contact information with the IRS, click here.
To see a list of organizations the IRS has determined are in jeaporady of losing their exemption, click here.
To go to a new website the IRS has developed with information and trainings on different topics of interest to tax-exempt organizations, including filling out Form 990, click here.
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