Non-profits in Utah should be aware of important new tax reporting requirements for tax-exempt organizations. The Pension Protection Act of 2006 now requires almost all tax-exempt organizations to file an annual form with the IRS. Depending on the size of your organization, you may have to file an annual notice for the first time or you may be filing a different form than in the past.
Why is this so important?
•Annual information forms or notices filed by tax-exempt organizations are public information. Filing your form increases transparency by giving donors and volunteers the most up-to-date information about your organization.
•Organizations that don’t file for three consecutive years automatically lose their tax-exempt status. To ensure that this doesn’t happen, the IRS encourages all tax-exempt organizations to review their filing requirements as soon as possible and be prepared to file.
Impacted Organizations
Tax-exempt organizations must determine whether to file the new Form 990, 990-EZ or 990-N (e-Postcard) for the 2008 tax year.
•Large tax-exempt organizations will be filing the new Form 990. The IRS made significant changes to the 2008 Form 990. Review the new form and the instructions carefully so you can understand how the changes affect your organization.
•Mid-sized organizations can file either the new Form 990 or the Form 990-EZ, an abbreviated version that requires less reporting.
•Small organizations—those with gross receipts that are normally less than $25,000—previously did not have a filing requirement. Now, most are required to file a simple electronic form, the e-Postcard or Form 990-N, which asks a few identifying questions about the organization and only takes a few minutes to complete. Visit www.irs.gov/charities and click on “Annual Electronic Filing Requirement for Small Exempt Organizations” to learn more about e-Postcard and filing exceptions, and to access the form.
Filing Assistance
For the latest information for tax-exempt organizations, sign up for the EO Update, an e-newsletter delivered directly to your inbox at www.irs.gov/charities. For information about maintaining your tax-exempt status, filing dates and requirements, go to the IRS web-based training program, www.stayexempt.org.
