Don’t Throw Away Your Tax-Exempt Status

Posted in Tax News

Most tax-exempt organizations, other than churches, must file a yearly return or notice with the IRS. If an organization does not file as required for three consecutive years, the law provides that it automatically loses its tax-exempt status. 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:

Financial activity Filing requirement
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
Gross receipts ≥ $500,000, or
Total assets ≥ $1.25 million
Private foundation (regardless of financial activity) 990-PF