URGENT! Our Tax Exempt Status is AT RISK

[W4ZW]

:o
I have repeatedly advised the club that failure to file the annual 990 non-profit tax return would result in our non-profit status being automatically revoked. The Club Secretary has insisted there was no requirement and I went on record stating he was wrong. Well Dave is WRONG as I have pointed out in three club meetings.

I sent this notice to the officers and directors earlier this month, but no one has acknowledged anything. If we don't file this year's and all previous years by this SATURDAY, 15 MAY, our non-profit status will be automatically revoked by the IRS.

Here is the current EXTRACT from ARRL about this!

Many Radio Clubs Could Lose Tax-Exempt Status in 2010
TAGS: fiscal year, radio clubs
05/03/2010
Changes made three years ago to the federal tax laws could cause many radio clubs to lose their tax-exempt status this year. Clubs that are tax-exempt under Section 501(c) of the Internal Revenue Code must file the required IRS annual returns or reports before the deadline, which is May 15 for those with calendar years.
“Many clubs have, at some time in the past, applied for tax-exempt status as charitable organizations under Section 501(c)(3), as civic leagues under Section 501(c)(4) or...
Changes made three years ago to the federal tax laws could cause many radio clubs to lose their tax-exempt status this year. Clubs that are tax-exempt under Section 501(c) of the Internal Revenue Code must file the required IRS annual returns or reports before the deadline, which is May 15 for those with calendar years.
“Many clubs have, at some time in the past, applied for tax-exempt status as charitable organizations under Section 501(c)(3), as civic leagues under Section 501(c)(4) or as recreational clubs using Section 501(c)(7),” said ARRL Southwestern Division Director Marty Woll, N6VI. “Years ago, any club with gross receipts averaging less than $25,000 per year was not required to file annual returns with the IRS; however, after 2006, such clubs had to file a Form 990-N, a simple ‘electronic postcard’ with minimal information, by the 15th day of the fifth month after the close of each fiscal year. Some clubs may not have been aware of this new requirement or didn’t bother to comply. Even those that filed in a prior year may have neglected to keep up with the required filings as officers changed from year to year.”
Section 6033(j) of the Code provides that failure to file Form 990, 990-EZ or 990-N for three consecutive years results in revocation of tax-exempt status as of the filing due date for the third return. That filing date for calendar year 2009 is less than two weeks away. “If you are a club officer and are uncertain who is responsible for IRS filings, or whether such filings are current, you should determine your fling status as soon as possible and take immediate steps to file the current and any missed prior-year IRS forms,” Woll explained. “Going forward, your club’s board should assign the responsibility for compliance filings with a designated officer and document that responsibility in the written ‘job description’ for the position so that subsequent holders of the office are made aware of the requirements. If you have questions about your club’s status, you may wish to consult a CPA or other tax advisor.”

[W4ZW]

Law changed in 2006 with two year transition:

The new Form 990 series returns are effective for 2008 tax years (returns filed beginning in 2009). To allow organizations time to adjust to the new forms, the IRS is phasing in the new returns during a three-year transition period. During the transition, an organization’s annual filing requirement depends on its financial activity. The charts below indicate the general exempt organization filing requirements during the transition period.
2007 Tax Year (Filed in 2008 or 2009) Form to File
Gross receipts normally ≤ $25,000
Note: Organizations eligible to file the
e-Postcard may choose to file a full return.
990-N
Gross receipts < $100,000, and
Total assets < $250,000 990-EZ or 990
Gross receipts ≥ $100,000, or
Total assets ≥ $250,000 990

2008 Tax Year
(Filed in 2009 or 2010) Form to File
Gross receipts normally ≤ $25,000
Note: Organizations eligible to file the
e-Postcard may choose to file a full return. 990-N
Gross receipts < $ 1 million,
and Total assets < $2.5 million 990-EZ or 990
Gross receipts ≥ $1 million, or
Total assets ≥ $2.5 million 990

2009 Tax Year
(Filed in 2010 or 2011) Form to File
Gross receipts normally ≤ $25,000
Note: Organizations eligible to file the
e-Postcard may choose to file a full return.
990-N
Gross receipts < $500,000, and
Total assets < $1.25 million 990-EZ or 990
Gross receipts ≥ $500,000, or
Total assets ≥ $1.25 million 990

2010 Tax Year and later
(Filed in 2011 and later) Form to File
Gross receipts normally ≤$50,000
Note: Organizations eligible to file
the e-Postcard may choose to file a full return.
990-N
Gross receipts< $200,000, and
Total assets < $500,000 990-EZ or 990
Gross receipts ≥ $200,000, or
Total assets ≥ $500,000 990