Warning: Don’t throw away tax-exempt status

Beginning in 2008, some organizations in the United States that were not required to file tax returns with the Internal Revenue Service (IRS)—including many Kiwanis clubs—will have a new filing requirement: the new electronic postcard Form 990-N.

Small, tax-exempt organizations whose gross receipts normally are $25,000 or less are not required to file IRS forms 990 or 990-EZ. But the Pension Protection Act of 2006 requires these organizations to file the new electronic form annually. Failure to file for three consecutive years could result in revocation of the organization’s tax-exempt status.

The standard information the IRS will require when filing the electronic Form 990-N is the name of your Kiwanis club, mailing address, Web site address (if applicable), employer identification number (EIN), annual tax period date and a statement that annual gross receipts are still normally $25,000 or less. Because Kiwanis International operates on a fiscal year (October 1-September 30), the first filing will be for the tax period that begins October 1, 2007 and ends September 30, 2008, with a filing due date of February 15, 2009.

Many Kiwanis clubs may already have received a notice from the IRS regarding this new requirement. If your club hasn’t been notified, watch for updates on the Kiwanis Web site or you can refer to the IRS Web site to see if the new ruling applies to your club.