Is Your Chapter Safe from Taxes?

WASHINGTON, D.C. – You can help your chapter by telling them about a new law that may affect their exemption from paying federal income taxes. A few years ago, Congress passed a law requiring all tax-exempt organizations, even the smallest ones, to file an annual return with the Internal Revenue Service. Any organization that does not file for three consecutive years automatically loses its federal tax exemption.

The first three-year deadline for filing those returns was May 17, 2010. While thousands of organizations did file, a significant number did not.

The IRS recognizes the value these local organizations give to their communities, so it extended the filing deadline to October 15, 2010. It also published a list with the names and last known addresses of organizations that are at risk of losing their tax-exempt status.

"The last thing we want to do here at the IRS is have these groups lose their tax-exempt status because they haven’t filed a short, simple form,” said IRS Commissioner Doug Shulman.

The smallest organizations, with $25,000 or less in annual gross receipts, should file a 990-N (ePostcard). The ePostcard asks only eight questions and is filled out and sent using the Internet. Larger organizations eligible to file the 990-EZ must file their past due returns by October 15 and pay a compliance fee.

You can help by checking the “At-Risk List” or telling the local organization about the list.

News You Can Use - Get the latest specialized tax news and information for tax-exempt organizations and those who represent them delivered right to your e-mail box. Be the first to learn about tax law changes, published guidance, new forms and publications, web-only educational features and upcoming outreach events near you. Help exempt organizations stay exempt. Sign up for EO Update and click on EO Newsletter.

If you have additional questions about this, please contact Director of Operations Louis LeBlanc. Be sure to follow the latest TKE News with the RSS Feed, on Twitter or the official TKE Facebook Fan Page (Tau Kappa Epsilon Fraternity). Submit your news today. 

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