This section contains information for use by chapter officers & directors.
Important Regulatory Developments That Will Affect All U.S. Chapters
Mandatory E-filing of Form 990
Previously, only certain tax-exempt organizations were required to file their Form 990 returns electronically. Under Section 3101 of the Taxpayer First Act, all tax-exempt organizations will eventually need to do so. This includes the Form 990-T unrelated business income tax returns, if applicable. All Form 990s will be made available to the public through the IRS website. This new requirement takes effect for taxable years after July 1, 2019. As such, a tax-exempt organization with a fiscal year starting after July 1, 2019, is not required to electronically file its FY2019 annual return. However, the organization must file electronically its annual return for FY 2020. Under certain conditions, the act does permit a delay to mandatory e-file for organizations.
Notice Before Revocation of Tax-Exempt Status
Also, effective July 1, 2019, Section 3102 of the Taxpayer First Act requires the IRS to issue a notice informing a tax-exempt organization of its failure to file Form 990s for two consecutive years and the possibility of automatic revocation of tax-exempt status if it fails to file for a third consecutive year. Of course, organizations should comply with the IRS’s filing requirements, but they also should ensure that their information is current with the IRS to avoid missing such notices.
For more information, chapters should contact their tax accounting professional or the IRS website.