Rep. Lois Capps, D-Santa Barbara, on Tuesday urged Central Coast nonprofit organizations to verify their nonprofit status. Under the Pension Protection Act of 2006, nonprofits must file a return or notice with the IRS.
Nonprofits that have not filed a return in the past three years are in danger of losing their tax exempt status next Monday, May 17.
If an organization loses tax exempt status, it is required to pay income taxes, and donors are unable to deduct donations from their returns.
“I want to ensure that all of the nonprofits that do such great work on the Central Coast know about this deadline and are able to protect their tax exempt status,” Capps said.
Click here to search a database of local community nonprofits that may be at risk of losing their nonprofit status.
The smallest nonprofits, those with gross receipts normally less than $25,000, only need to fill out Form 990-N, also known as the e-Postcard, to protect their tax-exempt status. Completing the e-Postcard requires the eight items listed below:
» Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN)
» Tax year
» Legal name and mailing address
» Any other names the organization uses
» Name and address of a principal officer
» Web site address, if the organization has one
» Confirmation that the organization’s annual gross receipts are normally $25,000 or less
» If applicable, a statement that the organization has terminated or is terminating (going out of business)
Click here for more information.
— Ashley Schapitl is the press secretary for Rep. Lois Capps, D-Santa Barbara.