Question: Unfiled Taxes
During our recent parent meeting, it was brought up that the group has not filed taxes for a number of years. If I remember correctly it has been since 2008. Does anyone know what we can do to get the taxes taken care of and if there will be any ramifications ($ wise too) against our organization? Thank you!
Asked by Anonymous
Advice from PTO TodayCraig writes:
If your group had tax-exempt status, the IRS would have automatically revoked it by now. If you don't file a return for three years, your status is revoked. You can find out whether your group has or had that status by using the IRS's new Exempt Organizations Select Check Tool.
If your tax-exempt status has been revoked or you never had it, the steps are the same. The IRS wants you to apply for tax-exempt status. They won't penalize you not filing previously, but they do want you to file going forward. The application is Form 1023. It's fairly involved, and the application will cost you a one-time fee of $400 or $850, depending on your group's annual revenue.
PTO Today's Startup Toolkit walks you through the application question by question.
I should note that there are many parent groups that operate without tax-exempt status and don't file returns. However, the IRS has been focusing on getting all small nonprofits registered.
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