November 2007

New Business

Small tax-exempt organizations have new filing requirement

11/1/2007 -

Thanks to a provision in the Pension Protection Act of 2006, tax-exempt organizations with annual gross receipts of $25,000 or less will generally have to file a new annual report with the IRS.

Form 990-N is to be filed electronically. The IRS calls the new form an e-Postcard because it is short, easy, and electronic. It asks for the organization's name, address, name and address of a principal officer, and confirmation that the organization's gross annual receipts are normally $25,000 or less.

If an organization fails to file the required report for three consecutive years, it risks losing its tax-exempt status.

For more information or assistance with filing, contact our office.
 

Before you invest in any business, it's always a good idea to discuss the proposed venture with your advisors. If you would like assistance with evaluating a business opportunity or with legitimate tax planning, please call our office.