A significant tax deadline may have come and gone for small charitable organizations. Due to a little-noticed provision in the Pension Protection Act of 2006, charities with annual revenue of less than $25,000 were required to file Form 990, Return of Organization Exempt From Income Tax, with the IRS by May 17, 2010. Form 990 is used to verify qualification for tax-exempt status.
Previously, these charities were exempt from the filing requirement. But many small charities were unaware of the new rule or didn’t have the resources to comply. This puts their tax-exempt status at risk and could result in additional tax liability. If an organization’s tax exempt status is revoked, it should seek professional assistance.
- Small Business Tax Deduction Strategies No matches