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On 5/15 Thousands of Non-Profits Will Lose Their 501c3 Status

April 14, 2021 | by Belinda Whitfield, Certfied Public Accountant


That’s right, many organizations will get their 501c3 status revoked by the IRS with an effective date of 5/15.
Why? Because they did not file a 990 return for three consecutive years.

Let’s face it. Whether you put your 501c3 package together on your own, or worked with a professional, there was quite a bit of work involved.
Here are 3 simple steps to make sure your time and hard-earned money doesn’t go to waste.

First of all, if your organization is a church, or an association of churches, or even a church-controlled organization, don’t worry, don’t hit the panic button.
Churches are not required to file Form 990 tax returns.

Take Action!

So here’s a few simple steps to keep your not-for-profit in good standing with the IRS.

1.  File a 990-N right away, if you qualify.  If your organization received under $50,000 in revenue during calendar year 2012 (and that includes the value of donated items), you’ll need to go online and file a 990-N return.
It’s quite simple. You’ll create a user account and password, then log in and provide the IRS current information about your organization.  This is an electronic filing.  The IRS does not accept paper filings for 990-N’s.

2.  File Form 7004 to request an extension.   The clock is ticking, and we’re days away from the 5/15 deadline.  If your organization received over $50,000 in revenue during calendar year 2012, you’ll definitely want to request an extension by 5/15 so you have ample time to get your finances in order and have a professional prepare an accurate annual tax return.  Depending on your total revenues and assets, you will need to file an 990-EZ (short form) or a 990 form.

3.  If you don’t know what your total revenues were, file IRS Form 7004  to request an extension.

Written by Belinda Whitfield, Certfied Public Accountant

Belinda Whitfield is a certified public accountant that specializes in serving churches and non-profit organizations. Through her firm, Whitfield & Associates, she provides tax services, accounting and compliance oversight and strategic planning for churches and non-profits throughout the United States.

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