Do I need to file a tax return for a 501(c)(3) organization?

wrote

Not this year, but you may want to jump through the hoops of preparing one so you have those numbers, as you may be required to file returns in the future, and having the prior years data handy is invaluable.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

No. Do not file a return until your gross income is $25,000 or more. Dennis

From your question I am inferring things. The primary one being this is the first time doing a non-profit tax returns. Are you sure you are a 501(c)(3) organization. Have you applied to the IRS for this status? Do you have a copy of the letter from the IRS granting this status? Better check into that status first.

Regards

Mark Rigotti, CPA

As a general rule: NO

BUT: If you have received a FORM 990 from the IRS in the mail then YES BUT: You may want to file as an aid to generating donations or grants. A 501(c)(3) that does not file a 990 can be suspect....

There will be a new reporting requirement starting in 2008 for ALL 501(c)3s

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-- Don EA in Upstate NY

I don't think it is necessary to apply to the IRS to qualify as a 501 (c)(3) organization in all circumstances. Better check into THAT first.

"Gil Faver" as a 501 (c)(3) organization in all circumstances. Better

Gill,

Your point is well made. I can find no requirement that you MUST apply for this status.I am however reluctand to conduct free tax research at the start of tax season. However, from a practical point of view if the IRS does not recognize the charity then there is no charitable donation available to the doner of funds to the organization. The IRS does periodically publish a list of recognized charities. As a tax preparer I do check this list when I encounter an unfamiliar one charity. If you follow my logic - no recognization - no charity deduction - no cash in flows for the organization. Regards,

Mark Rigotti

Don Priebe" wrote

It looks to me that only the following are affected:

Section 501(c)(3) organizations that file unrelated business income tax returns (Forms 990-T) must now make them available for public inspection. This provision is effective for returns filed after the date of enactment. What am I missing?

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The only exception I know of to the requirement ot apply for tax exempt status is for "churches", although I have filed aplications for non-main stream denominations. I also don't know whether "churches" can be taken to mean all religious houses of worship such as synagogues, mosques, ashrams, hogans or wikiups. The IRS seems to have its own definition of what is a recognized religion and what is a tax sham. Linda Dorfmont E.A., CFP, CSA

The requirement that says that 501(c)(3) organizations must apply for tax exemption is found in Code section 508(a). This requirement does not apply to churches (Code section

508(c)(1)(A)) or to public charities that have gross receipts that are normally less than $5,000 per year (Code section 508(c)(1)(B)). The other requirement that was being alluded to in a previous message is a new requirement contained in the 2006 Pension Protection Act. This rule will require all tax exempt organizations that do not file a Form 990 series return to complete an online filing each year, even if their gross receipts are below the normal $25,000 filing threshold. See new Code section 6033(i). Failure to file for three years in a row will result in revocation of the organization's tax exemption. Code section 6033(j).

--Chris

Is there a URL leading to the location for the online filing? I couldn't find anything at

Here are the instructions to Form 990 on line:

Take a look at the bottom of page 12.

Stu

This page from the 990 istructions cited above isn't really going to get you to what you are looking for. The new filing requirement for small organizations is mentioned very briefly here:

1145,00.html at the last bullet point under the section labelled "Key Provisions". This is a new requirement in the tax code, and the IRS hasn't completely figured out how to implement it yet. There should be an announcement some time this year, and several IRS representatives that I have heard speak about the issue have stated that, once the IRS figures out how the small organization filing is going to be handled, they are going to try to send letters to as many affected organizations as they can (of course that is premised on the IRS actually having a current address for these organizations) with instructions on what to do. There should also be something posted on the IRS website once the instructions come out. Check under the link for "Charities and Non-Profits" on the IRS home page.

--Chris

Thanks for the good info Chris.

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