Small Charities – Its not to Late to File Form 990-N

Before 2006, small charities with less than $25,000 of annual gross receipts were not required to file Form 990.  After 2006, small charities are required to file Form 990-N (e-Postcard).   Failure to file Form 990-N for three consecutive years generally results in loss of tax-exempt status.  As of May 17, 2010, calendar year small charities that have not filed Form 990-N for the 2007 through 2009 tax years are in jeopardy of losing their tax-exempt status.   We suspect several thousands of small charities are currently in jeopardy of losing tax-exempt status for failure to file Form 990-N.

The IRS recently announced, however, that  it will do what it can to help small charities avoid losing their tax-exempt status.   Although the IRS has not clarified this statement, it is possible this statement means the IRS will not automatically revoke the tax-exempt status of every late filer.  If your small charity still has not filed, it is advisable to file Form 990-N as soon as possible.  If a small charity files now, it should increase its chances of avoiding revocation.  In addition, if tax-exempt status is revoked, filing Form 990-N will likely be necessary for re-instatement.  The Form 990-N may be filed by clicking the following link to the IRS website and following the instructions:  http://www.irs.gov/charities/article/0,,id=169250,00.html.

Written by in: Form 990


  • Our organization recently was sent a letter from the IRS that informed us that we lost our tax-exempt status for the Pownetwork for not filing for 2007, 2008 and 2009

    The Pownetwork has worked with Congressmen, Senators and the FBI and Homeland Security and performes a valuable service for the families of those servicemen and woman who have yet to come home from Americas Wars.

    The loss of our 501-C3 is devistating to us.

    Please…… What must we do to turn this around.

    Your help will be most appreciated and welcome from all involved.


    C.P. Schantag

    • Nathan Boyce says:

      The IRS has recently issued guidance on how an organization can seek reinstatement of exempt status for failure to file annual returns. Notice 2011-43 applies to small organization that were required to file 990-N for 2007-2009 and Notice 2011-44 applies to other organizations. Both can be found through the “search” box at http://www.irs.gov. In either event an organization must file Form 1023 and take certain additional actions. We would be happy to discuss your particular situation with you if that would be helpful.

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