Tax RelatedKaren Basham,
CPA, Manager | New for Tax-Exempt Organizationse-Postcard
Beginning in 2008, small (gross receipts < $25,000) tax-exempt organizations may be required to file an annual electronic notice, Form 990-N, also referred to as the "e-Postcard." This threshold will increase to $50,000 in 2010. The e-Postcard will be due each year by the 15th day of the fifth month after the close of the organization’s tax period. The Pension Protection Act of 2006 requires the IRS to revoke the tax-exempt status of any organization which fails to meet the annual filing requirement for three consecutive years.
New Form 990
On December 20, 2007, the IRS released the 2008 Form 990, Return of Organization Exempt from Income Tax. Form 990 has not been significantly revised since 1979, and it is universally regarded as needing major revision. Major changes include a front page summary that provides a snapshot of key financial and operating information, a governance section, and revised compensation and related organization reporting. To increase reporting compliance, the new form replaces existing “unstructured attachments” with formal schedules. Public charities and other tax-exempt organizations will begin using the new form for the 2008 tax year (returns filed in 2009) To address transition concerns, the IRS will phase in the new form over a three-year period, allowing smaller organizations the option to file either the new Form 990 or the Form 990-EZ for 2008 and 2009 tax years.
| May file 990-EZ for: | If gross receipts are: | If assets are: | | 2008 tax year (filed in 2009) | > $25K and < $1M | < $2.5M | | 2009 tax year (filed in 2010) | > $25K and < $500K | < $1.25M | | 2010 and later years | > $50K and < $200K | < $500K |
For more information about these and other changes affecting tax-exempt organizations, please call Karen at 288-6621 or email Karen_Basham@mnccpa.com. |  |
