IRS Is Imposing More Requirements on Small or Inactive Nonprofits

The New Pension Protection Act contains a provision that, beginning after 2006, small organizations that don't currently have any filing requirement will be required to provide an annual electronic submission to IRS that includes:

• the organization's legal name,

• other names used by the organization,

• it's mailing address,

• it's Internet website, if any,

• it’s employer identification number,

• the name and address of the principal Officer, and

• evidence of the continuing basis for the organization’s exemption from filing requirements (presumably that they continue to have under $25,000 in gross receipts annually).

The law says that failure to provide this notification may result in the loss of exempt status.

Regulations will provide details about the process.  Organizations will also have to give notification if their existence is terminated.