Uncategorized | April 27, 2010
In the Fall, 2009 issue of WAC Artscapes, Grant Manager Karen Merklin provided information advising small non profits with an annual gross of less than $25,000, that they would have to start filing a 990 Form with the Internal Revenue Service (IRS).
This link was provided at that time to enable nonprofits to obtain additional information: http://www.webcpa.com/news/IRS-Publishes-Final-e-Postcard-Regulations-51129-1.html?zkPrintable=true
We have recently become aware of additional information regarding this new requirement, and wanted to pass it along to our Wyoming nonprofits.
IRS Instructions for Form 990 state that the law now requires most tax-exempt organizations, other than churches, to file an annual Form 990, 990-EZ or 990-PF with the IRS, or to submit a Form 990-N e-Postcard to the IRS. If an organization fails to file an annual return or notice as required for 3 consecutive years, it will automatically lose its tax-exempt status. Beginning in 2010, automatic revocations will start for organizations not filing for the 3rd consecutive year. Orgs that lose their exemption must file income tax returns and pay income taxes.
The New York Times says in a 4/22/10 article entitled “One-Fourth of Nonprofits Are to Lose Tax Breaks” by Stephanie Strom, that as many as 400,000 nonprofit organizations will lose their tax exemption at midnight on 5/15/10, if they have not filed the proper tax forms the following year.
The Wyoming Arts Council does not offer tax advice. However, we do want to help get the word out about this important IRS requirement. Instructions for Form 990 do not specifically list the 5/15/10 due date that the New York Times stated in their article, but it does say this will happen in 2010. We suggest that all nonprofit organizations contact their accountant immediately to ensure the proper forms have been filed with the IRS.