Critical IRS 990-N Deadline for U.S. Clubs
May 15, 2010
Urgent Action Needed: A Critical
IRS Deadline is Approaching!
The Internal Revenue Service (IRS) requires that any United States-based group failing to file an e-Postcard will lose its status as an official Toastmasters club. If you’re located in the USA, protect your club! Be sure to read and follow the information below, which has been quoted directly from the IRS Web site:
“Late Filing or Failure to File the e-Postcard
If you do not file your e-Postcard on time, the IRS will send you a reminder notice but you will not be assessed a penalty for late filing the e-Postcard. However, an organization that fails to file required e-Postcards (or information returns – Forms 990 or 990-EZ) for three consecutive years will automatically lose its tax-exempt status. The revocation of the organization’s tax-exempt status will not take place until the filing due date of the third year.
“What happens if I fail to file the e-Postcard or Form 990 or Form 990-EZ?
An organization that fails to file the required e-Postcard (or information return) for three consecutive tax years will automatically lose its tax-exempt status. The revocation of an organization’s tax-exempt status will not take place until the filing due date of the third year. For example, if your first e-Postcard is due on May 15, 2008 (for tax year 2007) and you do not file in 2008, 2009, or by May 15, 2010, you will lose your tax-exempt status effective on May 15, 2010.
“Can an organization have its tax-exempt status reinstated if it was revoked for failing to file for three consecutive years?
Yes, but you must apply (or reapply) and pay the appropriate user fee to have your tax-exempt status reinstated if it was revoked because you failed to file for three consecutive years. An exemption application is required even if your organization was not originally required to file an application. Reinstatement of tax-exempt status may be retroactive if you can show that you had reasonable cause for not filing. To apply for tax-exempt status, use Form 1023, Application for Recognition of Exemption, (if you are a section 501(c)(3) public charity) or Form 1024, Application for Exemption under Section 501(a) (for other types of tax-exempt organization.”
Need additional information?
For more answers, visit the IRS 990-N FAQ page. Please keep in mind: As of May 15, 2010, it will be three years. If any club has not filed the 990-N by that time, they will lose their tax-exempt status. Toastmasters provides the information and links you need to file the e-Postcard, such as your club’s EIN number, on these pages: IRS 990-N Filing Requirement for all US Clubs (PDF). Follow the simple steps and your fellow club members will thank you!