Even though tax-exempt organizations normally aren’t subject to income taxes, most are still required to submit an annual return to the IRS and also make the form available for public inspection. The complexity of the form required depends on an organization’s amount of assets or gross receipts.
For 2013 returns, organizations with gross receipts of $200,000 or more or total assets of $500,000 must file Form 990 with the IRS by the 15th day of the fifth month after their year-end. Organizations with gross receipts and assets less than these amounts are allowed to file a simplified Form 990-EZ.
Most organizations with less than $50,000 in gross receipts annually have an easier method for filing with the IRS each year. These small organizations can file Form 990-N (known as E-postcard). This filing simply confirms certain facts about the entity including the gross receipts threshold.
Additionally, all tax-exempt organizations with payroll expenses must file with federal, state and local tax authorities to remain in compliance.
The consequences of not filing proper paperwork with the IRS and other tax agencies can be very detrimental to an organization’s existence including possible loss of tax-exempt status. If you need help determining your specific requirements, please contact us for assistance.
posted by Lisa DeVaughn Foley, CPA, CGMA