Changes in filing Form 990 (for U.S. districts only)

Relief offered from the IRS to U.S. clubs who missed filing deadlines

U.S. DISTRICTS ONLY - The IRS Filing Relief Voluntary Compliance Program could save your club from having to reapply for not-for-profit status, even if your club missed the Form 990 filing deadlines.

Has your club or district filed your annual Form 990?

The Internal Revenue Service (IRS) has issued a one-time special relief program for small charities that have not filed a return for 2007, 2008 or 2009. These charities have until October 15, 2010 to file the necessary return in order to maintain their not-for-profit status. After October 15, 2010, the IRS will revoke the not-for-profit status of small charities that did not take advantage of the relief program.  "Charities," in this case, includes Kiwanis clubs.   

The first type of relief is for organizations with less than $25,000 in average annual receipts. These organizations can visit the IRS website (www.IRS.gov) and complete Form 990-N. The second type of relief is a voluntary compliance program for organizations that file Form 990-EZ. These organizations must file the delinquent returns and pay a compliance fee. Relief is not available to organizations that file Form 990 or Form 990-PF.  Additional information regarding this relief program is available on the IRS website, such as a listing, by state, of organizations that have not filed a return. 

The IRS issued the guidance on July 26, 2010,noting, "This one-time relief benefits Form 990-N (e-Postcard) and Form 990-EZ filers only.  Organizations required to file Form 990 or Form 990-PF are not eligible and are automatically revoked if they fail to file for three consecutive years." The guidance also specifies that this one-time relief is available to organizations whose returns were due on or after May 17 and before October 15, 2010, and reiterates that nonprofits that do lose tax-exempt status must reapply if they want their exemptions restored.

What should you do if your club missed a 2010 filing deadline?

Start by checking the IRS list of organizations at risk of revocation [http://www.irs.gov/charities/article/0,,id=225889,00.html]. If you find your club on the list and its gross receipts are less than $25,000, an officer from your club should file Form 990-N [http://epostcard.form990.org]. If your organization's revenues are $25,000 or greater, determine whether your club qualifies [http://www.irs.gov/charities/article/0,,id=184445,00.html] to file a Form 990-EZ. If it does, follow the instructions [http://www.irs.gov/charities/article/0,,id=225704,00.html] to participate in the Filing Relief Voluntary Compliance Program. You will be required to pay a fee of $100, $200 or $500, depending on the amount of your 2009 gross annual revenues. If your organization is required to file Form 990 or Form 990-PF and has missed the deadline for filing your 2009 return, you cannot participate in the Filing Relief Voluntary Compliance Program. You must reapply to the IRS if you wish to regain your exemption.

Watch for more information about this program on www.KiwanisOne.org and in future issues of Kiwanis magazine.