990 Filing for Small Public Charities
Under the Pension Protection Act of 2006 (PPA), any organization that is not required to file Form 990 because it is a “small public charity” will be required to submit an annual 990-N report to the IRS. The IRS posted FAQ's with additional information about the filing requirement. A “small public charity” is one that has annual gross receipts normally less than $50,000 (or $25,000 for tax years ending after December 31, 2007 and before December 31, 2010). Organizations whose grantees are required to file a 990-N may use the IRS’ online search tool, Select Check, to verify if the 990-N has been filed and to view the filing.
To which notices or returns does this apply?
Notices and returns for annual periods beginning after 2006.
What information is required to be reported annually to the IRS?
An organization will be required to provide:
- its legal name
- other names under which it does business
- its mailing address
- its web address (if any)
- its taxpayer identification number
- the name and address of a principal officer
- evidence of the continuing basis for the organization’s exemption from the Form 990 filing requirements
If an organization dissolves the organization must provide the IRS with notice of the dissolution.
How is that information provided to the IRS?
This information must be provided electronically on the 990-N. Instructions for filing the 990-N and a link to the form are available on the IRS web site: http://www.irs.gov/charities/article/0,,id=169250,00.html. Use the IRS online search tool to find and view e-Postcards filed by small tax-exempt organizations.
What is the penalty for failure to annually report?
There are no financial penalties for failure to file this annual report. However, if an organization fails to file either a Form 990 or annual report for three consecutive years, the organization’s exempt status will be revoked either on or after the date for filing set by the Treasury Secretary.
Disclaimer
The information provided in this resource is based on our continuing analysis of the Pension Protection Act. Every effort has been made to ensure the accuracy of this information. Due to the complexity of the PPA and the fact that many of these provisions introduce issues that are new to the Internal Revenue Code, this information is subject to change. Please check back here and on the IRS website (www.irs.gov) for updates. This information is not a substitute for expert legal, tax, or other professional advice and we strongly encourage grantmakers and donors to work with their counsel to determine the impact of the PPA and related guidance on their particular situations. This information may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code.
