There is a timebomb ticking for many non-profit organizations and clubs, and if no action is taken, your club or non-profit organization could lose its IRS tax-exempt status!   You've got less than a week to perform a simple task to avert this disaster.

 

Changes made three years ago to the federal tax laws could cause many
non-profits to lose their tax-exempt status this year.  To protect
themselves, organizations that are tax-exempt under Section 501(c) of the
Internal Revenue Code must file the required IRS annual returns or
reports before the deadline, which is May 15 for those with calendar
years.

Many organizations have, at some time in the past, applied for tax-exempt
status under Section 501(c)(3) [charitable organizations], Section
501(c)(4) [civic leagues] or Section 501(c)(7) [recreational clubs].
Years ago, any club or organization with gross receipts averaging less than $25,000 per
year was not required to file annual returns with the IRS.  However,
after 2006, such organizations had to file a Form 990-N, a simple “electronic
postcard” with minimal information, by the fifteenth day of the fifth
month after the close of each fiscal year.  Some organizations may not have
been aware of this new requirement or didn’t bother to comply.  Even
those that filed in a prior year may have neglected to keep up with the
required filings as officers changed from year to year.

Section 6033(j) of the Code provides that failure to file Form 990,
990-EZ or 990-N for three consecutive years results in revocation of
tax-exempt status as of the filing due date for he third return.  That
filing date for calendar year 2009 is less than one week away.  If you
are a club or organizational officer and are uncertain who is responsible for IRS filings
or whether such filings are current, you should determine your fling
status as soon as possible and take immediate steps to file the current
and any missed prior-year IRS forms.  Going forward, your organizations’s board
should assign the responsibility for compliance filings with a
designated officer and document that responsibility in the written
“job description” for the position so that subsequent holders of
the office are made aware of the requirements.  If you have questions
about your organizations’s status, you may wish to consult a CPA or other tax
advisor.

 

Here is a link to the 990-N ePostcard, which is very simple to fill-out.

Here is a link to the information required for a 990-N ePostcard.

 

_{DISCLAIMER: All information on this website is purely information and should not be used when making actual financial decisions. Advice provided on this website is not considered to be a substitute for a Personal Financial Advisor. All readers should consult with their own Financial Advisor before making any financial decisions.}