Final regulations on tax-exempt organizations clarify reporting issues
Updated reporting requirements impact tax-exempt organizations with receipts of $50K or less, 501(c)(3) charitable organizations and 527 political organizations.
IRS news release IR-2020-103 announces the release of final Treasury regulations clarifying reporting requirements for tax-exempt organizations. The final regulations largely adopt relief announced in earlier guidance, such as Rev. Proc. 2011-15.
Under the final regulations:
- Tax-exempt organizations with gross receipts of $50,000 or less are exempt from having to file an annual return (Form 990).
- These organizations are still required to electronically submit a Form 990-N “e-postcard” each year.
- For organizations that do have an annual return filing requirement, only §501(c)(3) charitable organizations and §527 political organizations are required to report substantial contributors’ names and addresses.
- Generally, substantial contributors are those that donate $5,000 or more, and must be reported on Form 990, Schedule B.
- All other tax-exempt organizations, such as social clubs and fraternal organizations, must maintain names and addresses of substantial contributors in their books and records.
Tax-exempt organizations may choose to apply the final regulations to returns filed after September 6, 2019.