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IRS Alert: Locals Must File IRS 990 Reports by Oct. 15

Web News Article #: 
104-2010

10/06/2010 - APWU locals and affiliated organizations may be in danger of losing their tax exempt status if they fail to file 990, 990-N, or 990 EZ reports for 2007, 2008, and 2009 by Oct. 15, the Internal Revenue Service has announced. A list of at-risk organizations can be found on the IRS Web site.

All non-profit organizations, including APWU locals, state organizations, retiree chapters, ABA chapters, and Auxiliary chapters with their ownEmployer Identification Numbers (EINs) must comply with this requirement – even if they received no funds for the years listed.

An organization’s tax-exempt status excuses the group from paying taxes on its gross receipts. (Even though such organizations are exempt from paying federal income taxes on gross receipts, they are required to pay federal payroll taxes for anyone they employ.)

The 990 forms verify an organization’s existence to the IRS and provide current information about the organization.

To avoid loss of your tax-exempt status, please check the IRS list and verify that 990, 990-N, or 990 EZ reports were filed for 2007, 2008, and 2009. If not, please be sure to file the forms by Oct. 15. If you believe your organization appears on the IRS list in error, or if you need assistance in filing delinquent reports, please contact the APWU Secretary-Treasurer’s office at 202-842-4215 as soon as possible.

A booklet to assist locals in filing the 990-N ePostcard is available for locals and chapters that had gross receipts of $0-$25,000 for 2007, 2008, and 2009. For 2010, locals and chapters with gross receipts of $0-$50,000 must to file the 990-N. There is no penalty for delinquent filing of the 990-N ePostcard.

Locals with receipts of more than $25,000 for tax years through 2009 and more than $50,000 for 2010 must file a Form 990-EZ or 990.

The IRS will assess penalties and interest on organizations that fail to file these reports in a timely manner. If your organization falls in this category, please verify that these reports have been filed with the IRS.

Tax-exempt organizations that do not satisfy the annual filing requirements for three consecutive years automatically lose their tax-exempt status. The IRS is providing one-time relief for such organizations with filing due dates on or after May 17, 2010, and before Oct. 15, 2010.

 

2009 Tax Year (Filed in 2010 or 2011)                                                                                        Form to File

*Gross receipts $0- $25,000                                                                                                         990-N ePostcard

Note: Locals, chapters eligible to file the ePostcard may choose to file a full return

Gross receipts $25,001- $500,000 and total assets less than $1.25 million                                       990-EZ or 990

Gross receipts $500,001 or more or total assets $1.25 million or more                                              990

 

2010 Tax Year (Filed in 2011 or 2012)                                                                                        Form to File

Gross receipts $0 - $50,000 
Note: Locals, chapters eligible to file the ePostcard may choose to file a full return                           990-N ePostcard

Gross receipts $50,001- $200,000 and total assets less than $1.25 million                                       990-EZ or 990

Gross receipts equal or more than $200,001 or total assets equal or more than $1.25 million or more  990

 

*Gross receipts are the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses.

 

If you have any questions regarding this issue, please contact Roosevelt Stewart, Executive Assistant to the Secretary-Treasurer, at (202) 842-4215.