American Friends groups take particular note:
The IRS has issued a set of Temporary Regulations (§1.6033-6T) and a series of information releases to cover procedures for the new annual reporting requirements for small nonprofits enacted in the Pension Protection Act of 2006.
The rules require small nonprofits that had previously been exempt from filing a Form 990 or 990-EZ because their receipts are normally less than $25,000 to file a new Form 990-N electronically to confirm that they still exist and carry on activities.
The statute takes effect for fiscal years beginning after December 31, 2006, and will first effect those organizations on a calendar fiscal year ending December 31, 2007. Their reports will be due by May 15, 2008.
Even if your organization has been exempt in the past, you are most likely now required to file. If you have specific questions as to your organizations’ liability, consult an experienced legal and / or tax professional. If you are an Israeli organization with a U.S. “Friends” group or other type of affiliate, make sure the professional you consult is licensed in the U.S. Do not be misled by a Board Member or employee saying, “we never did that before”.
And keep in mind, the IRS has a brand new weapon at their disposal…
A group that fails to file for three consecutive years will lose its exempt status.
with thanks to Donald Kramer, Esq., chair of the Nonprofit Law Group at Montgomery, McCracken, Walker & Rhoads, LLP
click here for a related article, ‘Some Fundraising Concerns Addressed in New Form 990‘ from AFP