Exempt Organizations Advisory - IRS Reminds Organizations to File Form 990

Catherine W. Wilkinson (cwilkinson@steptoe.com)
Suzanne Ross McDowell (smcdowell@steptoe.com) 

The IRS is reminding tax exempt organizations to file their Form 990 on time. Organizations that do not file the form for three consecutive years will have their tax exempt status revoked automatically. This year is the first year that revocations will occur, and the IRS plans to provide a list of revoked organizations to the public and state charity and tax officials. If an organization’s exempt status is revoked, it will have to reapply with the IRS and any income received between the revocation date and renewal date may be taxable. Small nonprofits, those with receipts of $25,000 or less, can file the Form 990-N online which requires a small amount of information. Other organizations must file the Form 990 or Form 990-EZ. All private foundations, irrespective of size, must file the Form 990-PF. For calendar year taxpayers, these forms are due by May 15^th.