Tax exempt organizations and foundations have different tax return and schedule filing requirements than a “normal” business or entity. Further, if a tax exempt entity fails to file a return the organization may jeopardize their tax exempt status. 990 series information returns and notices are due for organization on the 15th day of the fifth month after an organization’s fiscal year ends. Because many organizations use the calendar year, the due date for 990 returns would be May 15th.
If an organization fails to file an annual report for three years in a row, the organization will have its tax exempt status revoked on the due date of the 3rd required filing. The majority of tax exempt organizations will file their 990s with the Internal Revenue Service. Church and certain church related organizations are not required to file annual reports.
It is important for organizations to not state social security numbers on the 990s. The IRS and most tax exempt organizations are required to disclose to the public most portions or forms that are filed, including schedules and attachments. Because of this public disclosure, stating personal information such as social security numbers could lead to identity theft and thus should not be stated on the forms unless absolutely required.
Forms 990, 990-EZ, 990-PF and others are marked “Open to Public Inspection” and must be made public by the IRS.
Tax exempt organizations with average annual receipts of $50,000, are considered small tax-exempt organizations and may file an electronic notice, also known as a Form 990-N. Form 990-N provides basic information about the organization. Tax exempt organizations with average annual receipts above $50,000 must file form 990 or a 990 EZ depending upon receipts and assets. A private foundation will file Form 990-PF. An organization can obtain an extension to file their necessary tax forms and schedules, but no extension is available for Form 990-N.
In addition to publishing forms, the IRS also publishes the names of organizations that have lost their tax exempt state for failing to file their annual reports. Organizations can file a request to have their status reinstated if their status has been revoked.
Online searches can be performed to help individuals more easily find information about organizations and foundations. You can find key information about the organization and foundation and the tax exempt status of the organization.
You can contact The McGuire Law Firm to speak with a Denver tax attorney if you have questions regarding tax exempt entities. 720-833-7705 or John@jmtaxlaw.com