Check your filing status NOW - and maybe save your tax exemption!

Updated 5/18/2010

Update: IRS Commissioner Shulman has stated that the Service will try to work with small charities that missed the May 17 filing deadline, and urges organizations to file the e-postcard. View the full statement at http://www.irs.gov/newsroom/article/0,,id=223609,00.html?portlet=7 .

Thousands of New Jersey nonprofit organizations - including as many as 5,600 public charities - could be in danger of losing their tax exemptions if they haven't submitted required information filings to the IRS by May 17th. Is yours 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 bagan on May 17, 2010 (the extra time is because May 15 falls on a Saturday this year.) If tax exemption is revoked, the only way to reinstate it will be to reapply.

Small organizations with revenues below $25,000 are particularly vulnerable, since prior to 2008 they were not required to submit annual filings to the IRS, and they may not be aware of the requirement.

The Urban Institute's National Center for Charitable Statistics has developed a simple tool to find out if you may need to file. Here's how in three easy steps:

1. Click on this link or copy and paste the following into your web browser:
   http://nccsdataweb.urban.org/PubApps/statePicker.php?prog=epostcard&display=state .
2. Select "New Jersey" as the state and then enter your nonprofit's name. If there is an alert "FILE NOW" by your nonprofit's name, then
3. You may need to file a 990 or 990-N (e-postcard) by May 17 in order to avoid having your nonprofit's tax-exempt status automatically revoked by the IRS. (NOTE: The "file now" link will take you directly to the E-postcard electronic filing site. Your filing requirements may differ. See http://www.irs.gov/charities/article/0,,id=217087,00.html for more details.)

• Religious organizations are still exempt from Form 990 and related IRS annual filings. See http://www.irs.gov/charities/article/0,,id=152729,00.html for a basic description of the filing exceptions.
• The Form 990-N e-postcard is not for everyone. If your organization's gross receipts are normally in excess of $25,000, you must file a Form 990 and not the e-postcard. See http://www.irs.gov/charities/article/0,,id=169250,00.html
• If your organization is included in a group exemption, it might still show up on this list even though your parent organization may be including your financial information in its group return. Check with your parent organization or your accountant to be sure that the annual filings are being made. If your group exemption filings are up to date, you do NOT have to file separately.

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!

Our thanks to the National Council of Nonprofits and the National Center for Charitable Statistics for their strong leadership on this issue.

For more information:

Visit www.irs.gov/eo
Visit www.irs.gov/newsroom/article/0,,id=222668,00.html
Contact the Center .

Read about some other IRS requirements

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