Happy Tax Day
May 15 is tax day for tax-exempt organizations that operate on a calendar year tax period. Don’t forget to file the Form 990, Form 990-EZ, or Form 990-N or an Extension before that date (unless you...
View ArticleSmall Charities – Its not to Late to File Form 990-N
Before 2006, small charities with less than $25,000 of annual gross receipts were not required to file Form 990. After 2006, small charities are required to file Form 990-N (e-Postcard). Failure to...
View ArticlePolicy Time?
The new Form 990 now requires a tax-exempt organization to disclose whether it has adopted certain governance policies, including conflict of interest, whistle-blower, document retention, and joint...
View ArticleMedium-Sized Charities – It Is Time To Prepare For The New Form 990 Now
The Form 990 was substantially revised in 2008. To allow charities time to prepare, only charities with gross receipts ≥ $1 million, or total assets ≥ $2.5 million, were required to file the new Form...
View ArticleOverview of Form 990 Governance Policies
The Form 990 includes numerous governance and management questions. A brief summary of the more significant governance and management questions are provided below. The IRS has indicated that,...
View ArticleIRS Provides Relief for Small Organizations that Failed to File Form 990
Tax-exempt organizations that fail to file Form 990 (including Form 990-EZ and Form 990-N) for three consecutive years will automatically lose their tax-exempt status. The IRS announced today that it...
View ArticleFacing Late Filing Penalties – Don’t Despair (At Least Not Right Away)
Many small and medium sized charities are run almost entirely by volunteers and have little or no paid staff. It is not unusual for such charities to inadvertently fail to timely file Form 990 or Form...
View ArticleChange Your Activities? Don’t Forget to Tell the IRS
When a charity significantly expands or changes its activities, it must inform the IRS by disclosing the activities on its next filed Form 990. The Form 990 includes questions regarding whether the...
View ArticleFAQs for Delinquent Form 990 Filers
The IRS just released “Frequently Asked Questions” regarding its one-time relief for charities that face automatic revocation of tax-exempt status for failure to file Form 990, Form 990-EZ, or Form...
View ArticleIRS Should Adopt a Notice Procedure for Activity Changes
As we discussed in a prior post, a charity must notify the IRS of material changes in activities on its next Form 990. This process is beneficial to the IRS and the public. As I also discussed, in...
View ArticleMedium-Sized Charities – The New Form 990 Clock is Winding Down
Just ask your friends at a larger charity, preparation of the new Form 990 for the first time is no picnic. As we discussed in our blog post on July 5, medium-sized charities with gross receipts ≥...
View ArticleForm 990 Deadline Extended in Disaster Situations
The IRS recently announced that Form 990 filing due dates are postponed for organizations located in declared disaster areas, including victims of recent storms in North Carolina, Wisconsin, Illinois,...
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Charity’s Activities Don’t Compute
PLR 201047033 involved an organization that had qualified under 501(c)(3) to provide computer materials and computer training to the poor. Upon examination of the organization’s 990 and its principal’s...
View ArticleForm 990 Thresholds for 2010 – Good News / Bad News
As you recall, a Form 990, Form 990-EZ, or Form 990-N is due for every 501(c)(3) charity, regardless of size, on the 15th day of the 5th month following the close of the taxable year end. The IRS has...
View ArticleDelayed Form 990 Filing Season for Certain Tax-Exempt Hospitals
In IRS Announcement 2011-20, the IRS granted tax-exempt organizations that operate one or more hospital facilities (hospital organizations), and that would otherwise be required to file Form 990,...
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New Form 8940 – A Small Step in the Right Direction
The IRS has released Form 8940, Request for Miscellaneous Determination, that tax-exempt organizations will use to request certain determinations about their tax-exempt status. In addition to...
View ArticleIRS Guidelines for Reinstatement of Exemption
In 2006, Congress amended Section 6033 to revoke the tax-exempt status of organizations required to file an annual Form 990, Form 990-PF, or Form 990-EZ, that fail to file for three consecutive years....
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Garage Sale Christmas
As a consumer and parent, I love garage sale-ing–you never knew what you will find. Garage sales are especially helpful for Christmas shopping for young children. In my opinion, there is no reason to...
View ArticleGovernance and Compliance
In 2008, the Form 990 was re-designed to include, among other things, significant governance disclosures. The IRS justified the disclosures in part on the belief that organizations with good...
View ArticleIRS Releases Revised Form 990 Instructions
The 2013 Forms 990 and 990-EZ, schedules and instructions have been revised to modify and clarify certain reporting requirements. A chart summarizing some of the more significant changes to the Form...
View ArticleIRS Releases Updated Form 990-EZ; New Options to Help Exempt Organizations...
WASHINGTON — The IRS announced today the release of an updated Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, that will help tax-exempt organizations avoid common mistakes when...
View ArticleThree Tips to Help You File a More Complete Form 990-Series Return
A tax-exempt organization using the calendar-year as its tax year must file a Form 990-series return by May 15th, unless it has filed Form 8868,Application for Automatic Extension of Time To File an...
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