Nonprofit Knowledge Matters | Urgent Alert: IRS Filing Deadline

Spread the Word!  NEW IRS Filing Deadline Is This Monday, May 17th

In our March newsletter we reminded our readers about the annual IRS filing requirement for all nonprofits. The filing deadline for nonprofits with fiscal years that end on December 31st is now upon us: Calendar year-filers have until May 15th to file their Form 990 annual return with the IRS (but because May 15 falls on a Saturday, the actual deadline is Monday May 17). As reported in yesterday's National Public Radio story, the National Council of Nonprofits, and its network of State Associations all across the country, have been spreading the word about the imminent filing deadline because, for many nonprofits, this year the May deadline will bring an unwelcome surprise.

On Monday, May 17, more than 365,000 nonprofits will automatically lose their tax-exempt status unless they file their annual report with the IRS before then. Why? In 2006, Congress passed a law requiring all nonprofits - including those with revenue under $25,000 that for decades had been exempt from annual filing requirements - to file a Form 990 information return with the IRS. The new law requires nonprofits to file every year, but instead of automatically revoking the tax-exemption of those that had not filed, provided a three-year grace period for nonprofits that are still active to submit their annual report to the IRS. Nonprofits with annual revenue below $25,000 may file an electronic version of IRS Form 990-N (also known as the ePostcard because it asks just 8 simple questions) by May 17. Larger nonprofits must file Form 990 or 990-EZ, or at least file an extension to file, by May 17.

The National Council anticipates that many smaller nonprofits may be unaware of the new mandatory filing requirement. To help thousands of nonprofits avoid losing their tax-exempt status through automatic revocation, the National Council strongly recommends that everyone involved in any nonprofit - but especially smaller nonprofits that may not have  filed in the past - take these three simple steps:

Step 1: Double-check to see if your organization needs to file. Luckily it's easy to find out. Use this tool! The Urban Institute's National Center for Charitable Statistics has created a new tool that allows you to click on the name of the state where your nonprofit is incorporated, and enter the name of the nonprofit. Whether the nonprofit needs to "File Now" (or not) will be clear from the tool.

Step 2: Determine which form your organization needs to file. The IRS provides a helpful chart showing which organizations have to file which 990 form. Small nonprofits (defined as those with gross receipts normally $25,000 a year or less) will typically get to file the easy 990-N , which only takes a few minutes to fill out eight simple questions.

If you missed the webinar on this topic that the National Council hosted with Stephen Clarke, Tax Specialist with the IRS, you can - for free- listen to an audio recording of the webinar.

Need more information about annual filings at the state and federal levels?

• Read more about annual filings for tax-exempt charitable organizations.

• Read this fact sheet from the IRS for more information about filing annual returns.

Step 3: Help spread the word to others by sharing this story that aired on National Public Radio on May 12, 2010. Share the National Council's website  and refer local nonprofits to their State Association of nonprofits.

Join us on Twitter and Facebook. 

Organizations that lose their tax-exemptions may not receive tax-deductible contributions and will have to file all over again (at a cost of $850) for recognition by the IRS as tax-exempt charitable nonprofits. So by spreading the word, you will help groups focus on delivering their mission … instead of having to spend time and money re-filing forms!