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Saturday, July 14, 2007

SMALL EXEMPT ORGANIZATIONS STILL NEED TO FILE

Exempt organizations are generally required to file a Form 990 or 990-EZ each year. However, the Form 990 requirement is not applicable to organizations with less than $25,000 in annual receipts.

The IRS recently published a news release, reminding such small exempt organizations that while they do not need to file the Form 990 or 990-EZ, there is a new requirement to file Form 990-N, "Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ." This filing requirement commences in 2008.

The filing is simple enough, and will include providing a legal name and mailing address, any other names used, a Web address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less. While not fully developed yet, the IRS will provide a free, electronic means of filing the form.

While the filing does not include much information, this should not lull small exempt organizations into believing that they can ignore the filing or that penalties for nonfiling are de minimis. If the filing is not made for three years, the organization will automatically lose its exempt status.

For more information on these filing requirements, see Code Section 6033(i) & (j).

News Release 2007-129, 07/12/2007

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