A common misconception is the notion that an organization is exempt from paying taxes simply because it is organized as a nonprofit. Unfortunately, this particular misunderstanding could leave an organization facing tax debt with the IRS.
Orlando, Florida (PRWEB) March 14, 2013
CharityNet USA launches 990 Nonprofit Tax Reporting Awareness Campaign.
All nonprofits organizations must file 990 tax returns. Tax-exempt nonprofits do not pay federal taxes, but they do have to file an information 990 form with the IRS.
IRS Form 990 is the tax document that tax-exempt nonprofit organizations file each year with the IRS. The 990 allows the IRS and the public to evaluate nonprofit organizations and how they operate.
Beginning with tax returns filed in 2009 for 2008, nonprofits must file the new Form 990 that requires more disclosure of potential conflicts of interest, compensation of board members and staff, and other details having to do with financial accountability and avoidance of fraud.
Nonprofit does not mean tax exempt.
A common misconception is the notion that an organization is exempt from paying taxes simply because it is organized as a nonprofit. Unfortunately, this particular misunderstanding could leave an organization facing tax debt with both the IRS and their state franchise tax board. There are three specialized forms nonprofits must complete depending on the structure of the organization. Private foundations must file a form 990-PF, larger nonprofits with gross receipts of more than $50,000 must file a form 990 or 990-EZ, and smaller nonprofits with gross receipts of less than $50,000 must file 990-N.
A nonprofit organization must file the 990, 990-EZ, 990-N, or 990-PF by the 15th day of the 5th month after the accounting period ends. Therefore, if the fiscal year ends on December 31, the 990 is due on May 15 of the following year.
All of this detailed and intricate information can easily create confusion. CharityNet USA are experts in the area of 990 filings. More information may be gathered by visiting http://www.CharityNetUSA.com. Assisting nonprofit organizations in preparing the right 990 forms is among the services provided.
Do not risk problems with the IRS; let CharityNet USA help today, before the deadline approaches. 990 tax forms must be filed soon. CharityNet USA has employees rich with knowledge and experience in the area of the 990 tax laws. Call 407.857.9002 for more information on any nonprofit organizational issue or email info(at)bizcentralusa(dot)com.