Non-Profit Form 1023

[Albe]

The local school football booster club filed for a Federal ID number to obtain a checking account and checked the box for "Other nonprofit organization." Are they required to file Form 1023 "Application for Recognition of Exemption?" If they do not have to file form 1023, should they still file Form 990 if they do not meet the "Gross Receipts Test"?

A few other potentially relevant facts:

This "organization" has existed for several years, but only recently applied for its own ID number. Gross Receipts are currently less than $25,000. They are not concerned about providing "tax deductible" contributions to donors. Most money comes from football parents and local supporters (business and individual). They also conduct a couple of fundraising events each year.

Your responses are very much appreciated.

[taxmandan]

Exempt status

They really need to incorporate and file the 1023. Donors think they are making a tax deductible donations to a charitable organization (which they are NOT as things stand right now). I wouldn't file the 990, theIRS will reject it because the organization has not been granted exempt status. I went thru this with an organization who hadn't bothered with all that legal "stuff" until a bookkeeper joined the BOD and realized the Gross Receipts were in excess of $25k. She filed a 990 and theIRS rejected it since they had never been granted exempt status. When theIRS sent the letter they called me. We got them 501c(3) status as a charity and promised never to ignore the tax code again.

[ecb34691]

Yes by all means file it. I'm working with a Police Athletic League that was incorporated in 1993 in the state of Florida as a non-profit, but never filed the 1023 and it's a mess. State will not give them a solication permit because they don't have a determination letter, etc. Filed the 1023 in July 05 and just got the first response from IRS where they want additional info.

[John of PA]

990 Heads Up

One other warning I would like to add here. The penaly for a late 990 is big, something like $ 50. per day, and it is enforced. Penalty applies, even though no money is due with the return.