Non Profit Tax Status- heads up to those responsible

THIS MONDAY is the LAST DAY for “small non-profits”, who have previously not filed, to submit their 990-N tax form, or forfeit their non-profit tax status. I checked with a knowledgeable tax accountant and he said the only groups exempt are “houses of worship”; just being a religious group does NOT exempt your group from the requirement. If incorporated as a non-profit, Chevra Kadishas, cheseds, etc. need to file, according to his understanding.

A recent law now says that any non-profit not filing their annual 990 form for 3 years automatically have it’s non-profit status revoked. One is then required to re-file for non-profit tax status, starting over.

The law went into effect in 2006, so there have now been 3 years-

2007, 2008 & 2009. So if you never “get a round to it” for these

forms, the penalty has just mega-increased. And the deadline for

filing 2009 is THIS May 15th (May 15 is extended to May 17 this year due to the weekend)(if your tax year ends Dec 31)

The info below was posted on another list serve, or go to http://www.irs.gov/charities

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ALL THE NEEDED INFO AND A LINK TO FILE AN “E-POSTCARD”

CAN BE FOUND BY PUTTING “IRS 990 – N” INTO YOUR BROWSER,

OR: http://www.irs.gov/charities/article/0,,id=169250,00.html

It is actually surprisingly quick and easy to do this online, and if you get it done (for Tax Year 2009) by May 15 (extended to May 17 this year, because of weekend), it appears you will avoid any trouble. Apparently you would only lose your non-profit status if you failed to file 3 years in a row after the year the law was passed, 2006.

see also http://news.yahoo.com/s/ap/20100516/ap_on_bi_ge/us_charity_deadline_7