Retained - Lost Your Tax Exempt Status?

Retained - Lost Your Tax Exempt Status?

Tax-exempt designation (501 (C) 3) non-profit is really important because it allows these organizations to operate without having to pay taxes, obtain tax-exempt contributions from individuals and the business, and qualify for certain government grants. As you can imagine, these organizations have to follow a few rules to keep their tax exempt status. The annual presentation of information returns is one of those rules.

In the past, small nonprofit organizations (those with gross receipts not exceeding $ 50,000) were not required to file an annual return with the IRS. In 2007, the rule was changed and all profits are not required to file an annual information return with the IRS. Large non-profit basis (those with gross receipts over $ 50,000) are required to file Form 990 or Form 990-EZ. Small non-profit basis are required to submit an electronic postcard, 990-N. If a nonprofit organization fails to file for 3 consecutive years automatically lose their status as nonprofit. Because of this rule established in 2007, the IRS has recently relieved of its 275 nonprofit organizations.

If your organization is still active, but has lost its tax exempt status because they do not file returns as required, there is some good news, the IRS has a window of opportunity for organizations such as tax-exempt status restored. To make your tax-exempt status restored, you must do the following:

1. Spread the return by December 31, 2012.

Include a second statement is reasonable cause for not filing the last 3 years.

3. Include a written statement explaining the procedures of their non-profit organization established to ensure that you will make the necessary filings in the future.

4. Include proof of the statements above

5. Produce all necessary statements to date.

6. Pay a fee ($ 400 for organizations with annual gross revenue of more than $ 10,000 and $ 850 for those with gross sales of over $ 10,000)

The IRS has made a major concession to the smaller non-profit (gross income up to $ 50,000) and approve a user fee is € 100 instead of the usual quantity.

Retained earnings are important to the communities they serve, providing services that are not normally available, and sometimes the use of many people. To continue the work they do is important to be aware of the rules governing nonprofits. Here are some other rules that preserves must meet in order to maintain their tax-exempt status:

1. Do not participate in political campaigns of candidates for each office: Local. state. or federal.

Ensure that the second its assets and revenues are not unduly favor insiders such as directors and officers.

3. Ensure that the organization has not been used for purposes other than those exempted.

4. Ensure that a significant fraction of the organization and resources are not groped used to influence legislation.

Find out if your tax exempt status was revoked. http://www.irs.gov/charities/article/0,, id = 240,099.00. html

Verna James is the resident of the ACP http://quickncorporate.com in which to save all business entities in Florida, including nonprofit, fictitious names, limited liability companies, S corporations and C corporations also prepare application for exemption from profit taxes (Form 1023) and present the annual information returns (Form 990, 990-EZ and 990 N)

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Posted in: Non Profit