IRS information returns (the Form 990 series) are one of the most important ways charities share information about their organizations. The revised Form 990 is much more than a financial document -- it’s the primary source of information about your governance, operations, and programs available to government regulators, the press, and the public.

Form 990 Final Regulations
The IRS released final regulations (T.D. 9549) implementing the redesigned Form 990, “Return of Organization Exempt From Income Tax,"on September 7, 2011. The final rules are effective Sept. 8, and among other things, allow for new threshold amounts for reporting compensation, modify the scope of organizations subject to information reporting requirements upon a substantial contraction, and eliminate the advance ruling process for new organizations.

Filing Requirements
Learn more about the Form 990 filing requirements.

Failure to file
Beginning with tax filings for 2007, any organization that fails to file the required information return for three consecutive years faces automatic revocation of its tax-exempt status. The IRS released on June 8, 2011, a list of organizations whose tax-exempt status has been revoked for failure to meet the filing threshold.

In connection with the announcement and publication of revocations of exempt status, the IRS issued the following guidance:

• Notice 2011-43 - Provides guidance for transitional relief.
  
• Notice 2011-44 - Provides guidance for reinstatement.
  
• Revenue Procedure 2011-33 - Provides guidance for contributions made to revoked organizations.
• Revenue Procedure 2011-36 - Provides guidance for reduced reinstatement fees for qualifying small organizations.

The Chronicle on Philanthropy has created a searchable revocation list database.

Revocation of Tax-Exempt Status

• Organizations on the revocation list are no longer exempt from federal tax and must pay corporate income tax on annual revenue.
• Contributions made to revoked exempt organizations are no longer tax-deductible.
• Grants made by private foundations to nonprofits that have lost their exempt status are subject to an excise tax.