Legal Blog

The Weekly Scenario from Steve Shane – 5.20.13

Question:  What happens if a tax-exempt organization fails to file its annual tax return filing (Form 990)? Answer:  Since the IRS has been ‘in the news’ recently, I thought this question seemed timely.  An organization that holds itself out as tax-exempt because it has been granted tax exempt status by the IRS, must file Form 990 (or one of its various incarnations; 990-N, 990-EZ, 990-PF) on an annual basis.  If such organization fails to file the tax return for more than three consecutive years, it will have its tax-exempt status automatically revoked by the IRS.  Since it can be an expensive endeavor to obtain tax-exempt status, in addition to the lag time to get the IRS to approve the tax exemption, for obvious reasons, failure to file the return is not recommended. The 990 is due by May 15 for calendar year organizations. Comment:  Many non-profits have to disclose the 990 to the public and so typically these tax filings are available for view online. Steven E. Shane Principal Offit│Kurman Attorneys At Law 301.575.0313 Washington 443.738.1513 Baltimore 410.218.9339 Mobile 301.575.0335 Facsimile Please note the above material discussed is intended to provide only general information. Do not, under any circumstances, solely rely on this information as legal advice. Legal matters are often complicated. For assistance with your specific legal problem or inquiry please contact me directly.