Pension Act Reminds Nonprofits to Protect Tax-Exempt Status
As required by the Pension Protection Act of 2006, the IRS is reminding tax-exempt nonprofit organizations they are required to file their Form 990 by May 17 or risk having their federal tax-exempt status revoked.
The Pension Protection Act of 2006 mandates that all nonprofit organizations, other than churches and church related organizations, must file an information form with the IRS. This requirement has been in effect since the beginning of 2007, which made 2009 the third consecutive year under the new law. Any organization that fails to file for three consecutive years automatically loses its federal tax-exempt status, according to the IRS.
Form 990-series information returns are due on the 15th day of the fifth month after an organization's fiscal year ends, the IRS said. Many organizations use the calendar year as their fiscal year, which makes May 15 the deadline for those tax-exempt organizations. May 15 falls on a Saturday this year so the deadline this year is actually Monday, May 17. Organizations can request an extension of their filing date by filing Form 8868 by the original due date.
For more information, visit http://www.irs.gov/charities/article/0,,id=217087,00.html or http://www.irs.gov/charities/article/0,,id=187787,00.html.