Non–Profit Tax Exempts Must File!
Under the Pension Protection Act of 2006, beginning in 2007 all non-profits qualified under Federal Law 501(c)(3), must file some type of 990 Return annually. Formerly, non-profit tax exempts with annual receipts of less than $25,000 did not need to file. This reminder is important now, because three (3) years grace was allowed under the new law. Starting in 2010, any non-profit tax exempt that does not file could lose its exemption, and thereafter, would have to reapply with the IRS to regain tax exempt status.
This new requirement is not as onerous as it sounds, as a full 990 is appropriate only for sophisticated non-profits. Many organizations that are over the $25,000 threshold can file a 990 EZ. Private foundations are required to file a 990 PF. Organizations with less that $25,000 in revenues that formerly did not need to file at all, are also eligible to file a 990 N, which is essentially a postcard filing with only eight pieces of information required.
Non-profit tax exempts on a calendar year are required to file by May 15th of the following year. They are allowed an extension to August 15th, and a second extension to November 15th. The same timeframe applies to organizations that use a fiscal tax year, with initial returns due on the 15th day of the 5th month after the tax year ends.
More information for this is available for those who want to go on the IRS.gov website, or from your accountant, or, of course, from us.
– Thomas M. Wells