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Filing Deadline Ahead for New IRS 990-N
 

   4/20/2008
 
Does your chapter or state council hold a 501(c) (3) or 501(c) (6) IRS status, and do your annual gross receipts normally fall below the $25,000 filing threshold?  The change in the IRS filing rules impact you!  Failure to report under the new rules could jeopardize your status. 

Under previous IRS rules, the chapter/state council did not need to file an annual Form 990 with the IRS -if its annual gross receipts were normally less than $25,000.  However, under the Pension Protection Act of 2006, a 501(c)(3) or a 501(c)(6) organization (which includes most chapters/state councils), which is exempted from filing a Form 990 because its annual gross receipts are normally less than $25,000, must file a very simple electronic filing with the IRS once a year.  The form is called an e-Postcard or a Form 990-N. 

While SHRM does not serve as legal counsel for its chapters/state councils, we want you to be aware of this important information.  Here is a quick overview: 

  • The requirement to file this electronic Form 990-N applies to all tax years which begin AFTER Dec. 31, 2006, and is due the fifteenth day of the fifth month after the close of the tax year.  So if a chapter is on a calendar year and normally has annual gross receipts of less than $25,000, its first electronic Form 990-N will be due for its 2007 tax year on or Before May 15, 2008.
  • Failure to file the Form 990-N, when required, for three consecutive years will result in revocation of tax exempt status.
  • If you would like additional information about this new filing requirement, including notification when the filing system is ready, or information about other new developments, subscribe to Exempt Organization’s EO Update, a regular e-mail newsletter that highlights new information posted on the Charities pages of irs.gov.
  • Additional Information:
  • For more detailed information, please visit the IRS web site at http://www.irs.gov/charities/article/0,,id=169250,00.html

This information should not be construed as legal advice.  Chapters/state councils may wish to consult a local legal and/or accounting professional.

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