Is Your Exempt Status Safe?

One of the more significant changes in the Form 990, but much less publicized, was the change in the filing requirements for small exempt organizations. Under the previous rules, a small exempt organization, generally under $25,000 in gross revenues, was not required to file a Form 990. Under the new rules, those same organizations are required to file a very simplified return, known as a 990-N filing.

Unaware of the changes in the filing requirements, many non-profit organizations have not filed their 990-N filings for the past 3 years. According to the IRS website, these organizations are at risk of automatic revocation of their exempt status.

Fortunately, the IRS has announced a one-time amnesty program for these organizations, but in order to be brought back into compliance, the Form 990-N must be completed and filed by October 15, 2010.

The process of completing the Form 990-N filing can be accomplished online and takes less than 30 minutes. This includes setting up an online account and completing the 8 informational questions.

If you are a small, tax exempt organization and haven't filed any type of Form 990 for at least the past 3 years, we recommend that you check into the filing relief program. If you have further questions, or need assistance with completing the Form 990-N please contact AKT.

For more information on the IRS program, see http://www.irs.gov/newsroom/article/0,,id=225959,00.html