Thursday, December 20, 2007

The IRS to Reveal the New Non Profit Tax Form Today - Small Revenue Organizations Will Have to File, Too

The Chronicle of Philanthropy is reporting that today the IRS is going to share its new tax reporting form for American non profits.

Beginning in 2008, the IRS is going to require more American non profit organizations file a tax report, whether your non profit is a multi-million dollar operation, or not. It used to be (prior to 2008) that if your organization received less than $25,000 in a given year, the organization did not need to report to the IRS. Even if your non profit receives less than $25,000, as of 2008, you will need to file a tax report to the IRS. Those non profits who will have to begin reporting, i.e. received less than $25,000 in revenue will file an electronic (or real) "E Post Card".

To understand why the IRS is implementing these new reporting rules, and what the goals are, read my post, "New IRS Reporting Requirements for Non Profits, Or What Does the Pension Protection Act of 2006 Require of Non Profits Starting In 2008?"

The tax form that most American non profits file is the IRS tax form 990. Not only is the form a tool for the IRS to monitor American non profits' accounting, work, viability, commerce, and transparency - it is also a very helpful tool to those of us who are grant writers. To learn more about how this public document can assist you in getting grants read my posts, "The Grant Writer's Little Helper: IRS Tax Form 990 Post 1 of 2" and "The Grant Writer's Little Helper: IRS Tax Form 990 Post 2 of 2".

To retain your federal non profit status, your organization is going to have to complete its federal tax due diligence, so be sure that you understand the new form and its changes.

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