In the News: The IRS and 501(c)(3) and 501(c)(4) Organizations: What’s the Big Difference?

In case you haven’t read the news lately, the IRS has been targeting conservative nonprofits, mostly 501(c)(4) organizations.  What are 501(c)(4)s?  Do you need to know the difference between a 501(c)(3) and a 501(c)(4)?  Do you need a 501(c)(4) in addition to your 501(c)(3)?

A Section 501(c)(3) organization may be a public charity or a private foundation, either of which is entitled to receive tax-deductible contributions.  That’s good news for prospective donors and charitable recipients alike! 

The IRS in the News

News stories abound about the IRS’s targeting of organizations seeking tax exemption with the phrase “tea party” and other conservative words in their corporate name.

For a full copy of the Inspector General’s Report, click here.  

IRS Form 990 Filing Deadlines

Is your organization required to file an IRS Form 990 return?  Except for churches, other religious institutions, and their closely related organizations, all tax-exempt organizations must file one of three versions of the Form 990 information return.  No such organization is too small for the IRS!  Failure to file Form 990s for three consecutive years will result in automatic revocation of tax-exempt status.  So make sure you have the necessary information to fulfill this important filing requirement.