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Non Profit (Non Tax Exempt) Tax Filing

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    Non Profit (Non Tax Exempt) Tax Filing

    I would like to know if a small non profit organization (under $50,000 in receipts) that has not filed for tax exempt status still have to file a tax return? If so would it be a 990 form or the tax corporate tax form?

    Thank you.

    Tax Exempt Filing

    First - organizations formed for a tax exempt purpose need to file either a Form 1023 or Form 1024 (which is filed after obtaining an EI#) to apply
    for a tax exempt status. It is filed with an application fee based on the dollar amount of assets and/or revenue it expects to receive.

    Form 1023 is used for 501(c)(3)
    Form 1024 is used for all other types of 501(c) entities.

    Once the IRS approves the application, then EVERY tax exempt organization is required, with certain exceptions, to file Form 990 OR
    alternate version of 990 (990-EZ or 990-N) EVERY year.
    Not filing for 3 consecutive years gives the IRS authority to revoke the tax exemption, and an organization MUST reapply.
    There are special rules for reapplying.

    But to answer the question asked - YES - even if the funds received are below $ 50,000 - every entity is supposed to file some
    version of the 990 series.

    For organizations whose funds received are below the $ 50,000 threshhold - can file the e-Postcard - 990-N through the IRS website.
    Uncle Sam, CPA, EA. ARA, NTPI Fellow


      990 filing

      They file the Form 990 or 990EZ and mark the Header Box B "Application pending" if they have not received a status reply for their 1023 or 1024. I don't think they can file the 990-N yet since it doesn't have the Application Pending check box.
      "A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain


        What if a nonprofit corporation has no intention of filing for tax exempt status. Would it still file a 990? Or, as a C corp?


          If they are incorporated under state law they would file the 1120. 990 forms are used by entities approved by theIRS under Sec. 501(C)__ of the IRC. If the entity isn't incorporated, they file a partnership or sole-prop return.
          "A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain