New Annual Electronic Filing Requirement for Small Tax-Exempt Organizations

February 15, 2009

Small tax-exempt organizations (charitable organizations such as youth athletic leagues) that previously were not required to file returns because their gross receipts were normally $25,000 or less may be required to file an annual electronic notice. The Pension Protection Act (PPA) of 2006 added this filing requirement to improve transparency within the non-profit sector and ensure that donors and the IRS have current information about these organizations. 


The first annual electronic notice, Form 990-N, Electronic Notice for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, also known as the e-Postcard, is due in calendar year 2008. The e-Postcard will require organizations to provide basic information, such as their name and address, any other names they use, a Web address if they have one, the name and address of a principal officer of the organization, and a statement that the organization’s annual gross receipts are still normally $25,000 or less. 


Exceptions to the e-Postcard filing requirement include organizations that are included in a group return; private foundations required to file Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation; and Section 509(a)(3) Supporting Organizationsrequired to file Form 990 or Form 990-EZ. In addition, this filing requirement does not apply to churches, their integrated auxiliaries, and conventions or associations of churches. 


The PPA requires the IRS to revoke the tax-exempt status of any organization that fails to meet its annual filing requirement for three consecutive years. Therefore, organizations that do not file the e-Postcard or an information return will have their tax-exempt status revoked as of the filing due date of the third year

By | Posted in Business | | Comments (0)

Categories

Archives

Architects are creative professionals, educated, trained, and experienced in the art and science of building design, and licensed to practice architecture. Their designs respond to client needs, wants and vision, protect public safety, provide economic value, are innovative, inspire and contribute positively to the community and the environment.

414 Riverview Plaza, Trenton, NJ 08611
(609) 393-5690
info@aia-nj.org