The IRS recently reminded tax-exempt organizations to file Form 990, Annual Return of an Organization Exempt from Income Tax (“Form 990”), on time in order to preserve their tax-exempt status. Pursuant to the Pension Protection Act of 2006, organizations that do not file a required Form 990 for three consecutive years will be subject to automatic revocation of their exempt status (this requirement became effective in 2007). Organizations that lose their exemption will be forced to submit a new application to the IRS. Income received by the organization between the loss of exemption and the date of the renewed exemption may be taxable.
Tax-exempt organizations with annual receipts greater than $25,000 must file Form 990 or Form 990-EZ. Tax-exempt organizations with annual receipts of $25,000 or less may file an electronic notice, Form 990-N (e-Postcard). Private foundations are required to file Form 990-PF. Churches and integrated auxiliaries of churches generally are not required to file the Form 990-series returns.
Form 990 must be filed by the 15th day of the fifth month following the end of an organization’s tax year. As such, tax-exempt organizations that are on a calendar year must file the form by May 15th of the following year. Copies of the press release (IR-2010-10) and the Form 990-series returns may be obtained on the IRS web-site: www.irs.gov.