Tax-Exempt Organizations of All Sizes MUST File the Form 990 on Time or Lose Tax Exempt Status
By May 15, 2010 tax-exempt organizations other than churches must have filed IRS 990 forms within the past three years or lose their tax exempt status. This new law encompasses all levels of nonprofit including those with gross receipts under $25,000.
Any organization that has failed to file the required form for 3 consecutive years will see its tax exempt status revoked automatically by the IRS. A list of revoked organizations will be available to the public, as well as state charity and tax officials at www.irs.gov.
Loss of exempt status means an organization must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations. What must be filed this year depends on the organization's financial activity:
Gross receipts normally ≤ $25,000
Note: Organizations eligible to file the e-Postcard may choose to file a full return. 990-N (e-Postcard)
Gross receipts < $ 500,000 and
Total assets < $1.25 million 990-EZ or 990
Total assets ≥ $1.25 million 990
Private foundation (regardless of financial activity) 990-PF