Important Information for Local Sections about New IRS Filing Requirements 

Beginning in 2008, small tax-exempt organizations that previously were not required to file returns may be required to file an annual electronic notice, Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ. This filing requirement applies to tax periods beginning after December 31, 2006. Organizations that do not file the notice will lose their tax-exempt status.  There is an exception to this requirement for organizations that are included in a group return.  While AIHA local sections are included in AIHA’s group exemption from Federal income tax, this does not constitute a group return.  Therefore this new requirement pertains to all local sections that are not otherwise required to file a return.

Your local section may have already received information directly from the IRS about the new filing requirement.  If not, please read the information below, which also contains links to the IRS website for additional information.

Due Date

The annual notice is due by the 15th day of the fifth month after the close of your Local Section’s tax period. For example, if your tax period ends on December 31, 2007, the annual electronic notice is due May 15, 2008.

Information Included in Notice

The notice will require you to provide the following information:

• Local Section’s legal name;
• Any other names your Local Section uses;
• Local Section’s mailing address;
• Local Section’s website address (if applicable);
• Local Section’s employer identification number (EIN);
• Name and address of a principal officer of your Local Section;
• Local Section’s annual tax period;
• Verify that your Local Section’s annual gross receipts are still normally $25,000 or less; and
• Indicate if your Local Section has terminated (is no longer in business).

Failure to File

If a Local Section fails to file the annual electronic notice, Form 990, or Form 990-EZ for three consecutive years, the Local Section’s tax-exempt status is revoked as of the filing due date of the third year.

Can Tax-Exempt Status be Re-instated?

Yes, but the Local Section must apply (or reapply) for exemption using Form 1023, Application for Recognition of Exemption, or Form 1024, Application for Exemption Under Section 501(a), and pay the appropriate user fee. Reinstatement of tax-exempt status may be retroactive if you can show that you had reasonable cause for not filing the annual electronic notices of information returns.

For More Information

Click here to view current information about the e-Postcard filing requirements. You can also subscribe for the IRS EO Update, Exempt Organization’s free email newsletter. To subscribe, click here.