CTAs: Watch Your Tax-Exempt Status
On May 16, the IRS began revoking tax-exempt status from nonprofits that failed to file three consecutive annual returns (Form 990-N, 990-EZ, 990, or 990-PF). Approximately 25% of not-for-profits may lose their tax-exempt status for failure to file a 990 form.
Loss of tax-exempt status means an organization, such as a CTA, must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations.
Before 2006, organizations with less than $25,000 in gross revenues were exempt from filing, but the law was changed to require those smaller organization to file an “electronic postcard” on new Form 990-N. It is a short process that entails typing in basic information about the organization (name, address, EIN) and stating that it has less than $25,000 in income for the year.
Failure to enter that information online or file anything for three years now leads to revocation of exempt status. Visit www.irs.gov for additional information on filing.
TIMag.com news search
Latest TIMag.com news
- Dunlop, Atlanta Open Reach Multi-Year Ball, Racquet Agreement
- Eugenie Bouchard Joins Slinger Bag as Brand Ambassador
- Tennis Channel to Show Hall of Fame Induction Ceremony Live
- USTA Foundation Awards $1.07M to 105 NJTL Chapters
- Lin-Manuel Miranda Voices New US Open Marketing Campaign
- Tennis Channel is Exclusive Home of US Open Series
- Franklin X-40 Becomes Official Ball of USA Pickleball
- US Open Series Launches This Week With 9 ATP and WTA Events
- ESPN Reaches Agreement to Televise Wimbledon Through 2035
- Tennis Channel, Wimbledon Agree to New Partnership Through 2036