The Clock is Ticking…

The IRS has projected that 300-400,000 exempt organizations will lose their tax-exemption for failure to file the required annual return. Most tax-exempt organizations are required to file an annual return with the IRS, depending on gross receipts/assets of the organization. Under the Pension Protection Act of 2006, the clock began ticking in 2007.  If your tax-exempt organization has not filed the required return (Form 990, 990-EZ, 990-N, 990-PF) for three consecutive years beginning in 2007, your federal tax-exemption will automatically be revoked by the IRS. Organiztations with a calendar year-end are required to file the annual return (or an extension) by Monday, May 17th.

What are the 2009 filing requirements? Most organizations (excluding churches) under Code Sec. 6033(a) must file one of the following applicable returns:

Form 990 - If gross receipts > $500,000 and total assets > $1,250,000

Form 990-EZ – If gross receipts < $500,000 and total assets < $1,250,000

Form 990-N – If gross receipts are “normally” $25,000 or less.

Form 990-PF – Exempt and taxable private foundations (no threshhold on revenue or assets).

Form 8868 – Application for extension to file the above returns.

These returns are due on the 15th day of the 5th month, following the organizations calendar/fiscal year-end.

For additional IRS information and frequently asked questions and answers, follow this link.

Are you in compliance? You have until midnight tonight, to file the required form.