The clock is ticking. Now more than ever, nonprofit leaders should take steps to ensure that their exempt organization’s annual Form 990s are timely filed. Failure to do so could lead to the automatic loss of the organization’s exempt status and land the organization in a mire of unprecedented IRS backlog.
Whether starting a new nonprofit or running a well developed one, leaders nonprofits should carefully evaluate their activities to ensure that they are, in fact, serving appropriate beneficiaries within the meaning of applicable exemption laws. Consider the following cautionary tale involving a new section 501(c)(4) social welfare organization, which provides lessons for other tax-exempt organization as well.
The exempt organization community received welcome news today from the IRS, signaling what hopefully will be the start to a good year! Revenue Procedure 2014-11 issued on January 2, 2014, outlines four new streamlined procedures for reinstating the tax-exempt status of organizations that have had their status automatically revoked for failure to file IRS Form 990s.