Nonprofit Knowledge Matters | IRS Filing Requirements

Welcome to the new format of the National Council of Nonprofit’s monthly e-newsletter for all nonprofits: Nonprofit Knowledge Matters. As its name implies, this newsletter is designed to give nonprofit leaders access to up-to-date information and resources for building your nonprofit’s capacity to fulfill and sustain its mission. If you have questions or suggestions, please let us know.

New IRS Filing Requirement

The National Council of Nonprofits recently hosted a free webinar for nonprofits with a guest presenter from the IRS, Stephen M. Clarke. In case you missed it, you can listen to the audio recording here. In this newsletter we have highlighted the key facts about this year’s filing requirements.

Most importantly, 2010 is the first year the IRS will automatically revoke the tax-exempt status of organizations that have failed for three consecutive years to file the required Form 990 with the IRS.

What do these new rules mean for your nonprofit?

• If your organization has never filed, or has not filed in the past two years, and does not file for tax year 2009, it will lose its tax-exempt status, and will be required to reapply with the IRS.
• The IRS created a simple factsheet explaining the new Form 990 and other important information for tax-exempt organizations.
• Check out this filing phase-in chart about the new 990 form.
• It is important to file an annual return every year. The IRS just released the Form 990 for 2009.
• Your organization may be exempt from filing. Check this list to find out.
• Unless exempted, all other 501(c)(3) groups (even those that have filed an application but not yet received their tax-exemption) must file either the Form 990, the 990-EZ or the 990-N, depending on annual gross receipts.
• Know your deadlines. The due date for filing with the IRS depends on the fiscal year of the nonprofit. The forms are due no later than 5 ½ months after the end of the nonprofit’s fiscal year.
• Need an extension? Nonprofits can use Form 8868 to seek an extension.  Other rules and deadlines apply.

Want to stay current on important news for nonprofits? Joining your state association of nonprofits is the best way to keep current on state/federal/IRS issues, as well as trends and tools to help you build, grow, and sustain your nonprofit. You’ll also be able to attend training workshops to can help raise your organization to the next level. Nonprofit knowledge matters!

Visit the newly redesigned website of the National Council, filled with new content from advocacy to succession planning, risk management to volunteer management and information about the new governance policies, to the most recent news about nonprofits.

NEW! The Stay Exempt courses developed by the IRS offer nonprofit leaders five interactive lessons covering tax basics for nonprofits, as well as lots of tips and tools to help your nonprofit file an error-free annual return.