What you need to know about filing Taxes
 
Who has to file?
Did you know that most tax-exempt organizations must file a yearly return or notice with the IRS?  If an organization does not file as required for three consecutive years, the law provides that it automatically loses its tax-exempt status.
 
Loss of exempt status means that your affiliate must file income tax returns and pay income tax, and your contributors will not be able to deduct their donations.
 
Filing can be done quickly and easily - depending on the size of your affiliate's revenue.  

 
Most, if not all, NAMI affiliates in North Carolina will have annual receipts of $25,000 or less and can file an electronic notice, Form 990-N ( e-Postcard).  http://epostcard.form990.org
 
What do you have to do to file if your income is $25K or less?
With the form 990-N, all you will need are a few basic pieces of information:
1.      The affiliate's employer identification number (EIN)
2.      Your tax year (such and July 1, June 30)
3.      The legal name as it appears
4.      Your affiliate's tax exempt letter; and mailing address (as it appears on the tax exempt letter - which you want to keep updated)
5.      Any other names used
6.      An Internet address, if one exists
7.      The name and address of a principal officer
8.      A statement confirming the organizations annual gross receipts are normally $25,000 or less.
 
Do you have to file with the IRS if you're a nonprofit organization?
If your annual budget is less than $5,000 and you've never applied for 501(c)(3) tax-exempt status, you still need to file an e-Postcard. First, call IRS Customer Account Services (877-829-5500) to enroll. It takes about eight weeks to update the IRS's system, but you won't be penalized for filing late.
 
When do you have to file?
Tax-exempt organizations with annual receipts above $25,000 are required to file the Form 990 or the Form 990-EZ annually.   Form 990-series returns and e-Postcards, are due by the 15th day of the 5th month after an organization's tax year ends. (for nonprofits whose fiscal yearends Dec 31, that due date is May l5) 
 
 What must be filed this year depends on the organization's financial activity:
Gross receipts normally ≤ $25,000
Note: Organizations eligible to file the e-Postcard may choose to file a full return. 990-N (e-Postcard)
Gross receipts < $ 500,000 and
Total assets < $1.25 million 990-EZ or 990
Gross receipts ≥ $500,000, or
Total assets ≥ $1.25 million 990

Need More information? www.irs.gov/charities  and other links
    "IRS Releases New Form 990"  
  Governance Compliance Checklist for New IRS Form 990 (Robinson, Bradshaw & Hinson, P.A., www.rbh.com)  
  2008 Form 990, Instructions, and Helpful Background Information (IRS, www.irs.gov)  
  Annual Electronic Filing Requirement for Small Exempt Organizations - Form 990-N (e-Postcard) (IRS, www.irs.gov)  
  E-Postcard rules for Very Small (Less than $5,000) Nonprofits  
  E-Postcard: Frequently Asked Questions and Answers (IRS, www.irs.gov)   
  IRS Compliance Guide for 501(c)(3) Tax-Exempt Organizations (IRS, www.irs.gov)   
  Stay Exempt: Tax Basics for 501(c)(3) Nonprofits (Online Training) (IRS, stayexempt.org)   
  Additional Requirements for Certain Filers of Forms 990, 990-EZ, or 990-PF (IRS, www.irs.gov)  

 

Give us some feedback:  tell us if this is useful for you! 

 

Deby Dihoff and Susan King Cope

N AMI NC Staff

 
.