Saturday, February 7, 2009

New IRS requirements apply to non-profits with incomes of $25K or less

The Federal Internal Revenue Service (IRS) has some new reporting requirements for tax exempt organizations with annual revenue of $25,000 or less. This new requirement may affect lake associations that have tax exempt status as 501 (c) 3 non-profit organizations.

The IRS now requires that nonprofits with incomes of $25K or less now must file the Form 990-N (also called the "e-Postcard"). ThePension Protection Act of 2006 mandates that the IRS revoke thetax-exempt status of any organization that fails to file a Form 990,990-EZ, 990-PF, or 990-N for three consecutive years. Revocations will happen automatically beginning in May 2010. A nonprofit that loses its exemption because of failure to file will have to reapply to the IRS for exemption.

Read an article on this new requirement

More information on filing a 990 on the Internal Revenue Service website

Webmeister note: The above article appeared in a e-lake letter I received from the Wisconsin Association of Lakes. Will this affect your small fishing club? I don't know... but you might want to check it out?

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