Be sure your filing is up-to-date - and maybe save your tax exemption!
Every month, thousands of New Jersey non-profit organizations are in danger of losing their tax exemptions because they haven't submitted required information filings to the IRS. Make sure that yours isn't one of them!
Under the federal Pension Protection Act of 2006, exempt organizations that fail to file required Form 990 annual information returns (or, in the case of small organizations, the Form 990-N e-postcard) for three consecutive years will have their tax exemptions automatically revoked by the IRS effective on the filing due date of the third year. The Form 990 or e-postcard is required to be filed annually by the 15th day of the 5th month following the end of an organization's fiscal year.
The first round of revocations began on May 17, 2010, and auto-revocations are now implemented on a monthly basis. If tax exemption is revoked, the only way to reinstate it will be to reapply.
Small organizations or all-volunteer groups can be particularly vulnerable, since prior to 2008 organizations with less than $25,000 in annual revenues were not required to submit annual filings to the IRS, and all-volunteer groups with frequently-changing leadership may not be aware of the requirement.
To find out if an organization has been automatically revoked:
If your organization's exemption is revoked, the only way to reinstate it will be to reapply for tax exemption at a fee of as much as $850. You can save your tax-exempt status by filing! For more information, see the IRS' Basics of Auto-Revocation page.
The National Council of Nonprofits also has information on IRS Auto-revocation of Tax Exempt Status.
Please SPREAD THE WORD to other non-profits!
For more information:
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