Help your favorite local charities stay tax-exempt
You can help your favorite local charities or non-profit organizations by telling them about a new law that may affect their exemption from paying federal income taxes.
A few years ago, Congress passed a law requiring all tax-exempt organizations, even the smallest ones, to file an annual return with the Internal Revenue Service. Previsouly any organization with gross receipts less than $25,000 per year was exempt from any filing requirement. Any organization that does not file for three consecutive years automatically loses its federal tax exemption. Churches and some church-related organizations are among the few exceptions.
The first three-year deadline for filing those returns was May 17, 2010. While thousands of organizations did file, a significant number did not.
The IRS recognizes the value these local organizations give to their communities, so it extended the filing deadline to October 15, 2010. It also published a list with the names and last known addresses of organizations that are at risk of losing their tax-exempt status. “The last thing we want to do here at the IRS is have these groups lose their tax-exempt status because they haven’t filed a short, simple form,” said IRS Commissioner Doug Shulman.
The smallest organizations, with less than $25,000 annual receipts, should file a 990-N (ePostcard). The ePostcard asks only eight questions and is filled out and sent using the Internet. Larger organizations eligible to file the 990-EZ must file their past due returns by October 15 and pay a compliance fee.
You can help by checking the “At-Risk List” or telling the local organization about the list. The list and information on keeping tax-exempt are at www.irs.gov/charities.
If your non-profit organization needs assistance filing their annual returns, please contact LMGW Certified Public Accountants, LLP and retain your tax-exempt status.
ShareThis