< $25,000 no requirement, can file 990EZ voluntarily
$25-$100K 990EZ
$100K+ 990
Once the 990N came into play, everyone was expected to file. The 990N is about 10 questions and also called "postcard". Very simple.
Failing to file the 990N has no penalty, except revocation of status if you fail to file for 3 years.
Failing to file the 990EZ/990N is the $20 per day penalty. You can ask for the fines to be waived. Several here have done so, but it's not a quick process.
So if you are in the < $25K segment, there's not much of an issue. Just file now.
> Our T didn't file the 08/09 taxes. does anyone know what happens to us?
> I know we need to file them, but the tax codes are a disaster and I'm
> trying to make short heads or tails for the exec board....
There is a fine for late filing, I think it's $10 or $20 per day, up to a maximum of a few percent of your gross income. I presume when you file your 09/10 taxes, they'll notice that (a) your group is still in existence and (b) that you didn't file 08/09.
I know that the IRS waived the fine for our group, when I sent them a letter explaining the circumstances and how we now had procedures in place to make sure that we would be better in the future.
Just file now. Ideally your organization is small enough to file the 990-N. If not, then the 990 EZ. This effort by the IRS isn't just about making a list of those about to lose their status. It's one-time window to allow you to come back into compliance.
And, by the way, when a small 501(c)(3) org - like a PTO - "files its taxes", that's primarily just an INFORMATIONAL return. Rarely would the group actually owe taxes, at least not the type of groups most of us run.
One-Time Filing Relief for Small Organizations That Failed to File for Three Consecutive Years
Tax-exempt organizations that fail to satisfy annual filing requirements for three consecutive years automatically lose their tax-exempt status. The IRS is providing one-time relief that will allow small exempt organizations to come back into compliance and retain their tax-exempt status even though they failed to file for three consecutive years. If an organization loses its exemption, it will have to reapply to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.
This one-time relief benefits Form 990-N (e-Postcard) and Form 990-EZ filers only. Organizations required to file Form 990 or Form 990-PF are not eligible and are automatically revoked if they fail to file for three consecutive years.
List of organizations at risk of automatic revocation: The IRS website has a list of organizations at risk of losing their tax-exempt status because, according to IRS records, they have not filed for 2007, 2008 and 2009. The list contains the name of the organization and its last-known address. Check this list to see whether your organization is at risk of automatic revocation and can avoid this consequence by following IRS guidance.
Note: The list may be incomplete, as certain organizations may be at risk even though their names do not appear. In addition, the list may include organizations that were required to file Form 990 or Form 990-PF and are not eligible for the relief program, and organizations whose filing dates have not yet occurred.
Our T didn't file the 08/09 taxes. does anyone know what happens to us? I know we need to file them, but the tax codes are a disaster and I'm trying to make short heads or tails for the exec board....
The IRS has published a list of organizations due to lose their tax-exempt status because they have not filed tax returns for the last few years. There are lots of PTAs/PTOs on here--is your one of them?
