Non Profit Organizations:IRS and New Jersey Requirements This outline was created for the New Jersey PTA for their workshop held on July 17, 2010.
Non Profit Organizations:IRS and New Jersey Requirements Prepared by: Douglas D Ziegler III CPA 5 Susie Lane Jackson, NJ 08527 T. 732-833-8504 This outline was created for the New Jersey PTA for their workshop held on July 17, 2010. This outline is not for any other use and each particular circumstances may vary based on the readers facts. This is not a guide although several pages are from outside sources. Users should seek competent advice from their tax professional. This disclosure may be required by the Circular 230 regulations of the United States Treasury and the Internal Revenue Service. I inform you that any federal tax advice contained in this written communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (1) avoiding federal tax penalties imposed by the federal government or (2) promoting, marketing or recommending to another party any tax related matters addressed herein.
WWW.IRS.GOV There is only ONE official IRS website!
990 N Forms • 990 N is a difficult process for first time filers. All filers must have a federal employer identification number and it must be obtained before filing any forms. New filers will be successful if they are patient and closely follow the many steps as outlined through the IRS filing process. Established filers will find the renewal process much easier since the initial steps performed in the first year are already completed. • The 990 EZ has changed by the IRS reducing the number of users eligible to file the return for 2010 and increased the amount of information collected. In 2010 they are forcing many nonprofits to file 990 by subsequently reducing the eligibility requirements of Form 990 EZ. Both the 990 EZ and 990 have many more questions and detailed schedules.
Form 990 & 990EZ • For 2010 the 990EZ has a filing requirement of <$200,000 in Gross Receipts and <$500,000 in Total Assets. • All others must file Form 990. • When making the switch for the first time the preparer will have many more questions to answer. • The penalties are severe.
Form 990 & 990EZ • Failure to file the required returns for three consecutive years will result in monetary penalties as well as automatic revocation of the organizations tax exempt status. • All of the different returns are due by the fifteenth day of the fifth month following the organizations year end. • Three month extensions can be obtained only two times by filing Form 8868.
Form 990 & 990EZ • Short period returns are for less than twelve months and can only be done in the organizations first tax year. • A change in accounting period needs IRS permission and if done within ten years of the last change Form 1128 must be attached to the 990 filing. • All three forms are open to public inspection and upon request.
State of New Jersey • Form ST-5 is available from the state upon receiving 501 © 3 status from the IRS. • The PTA has a group exemption and all of the local chapters will qualify. • The forms are only available from the State office and cannot be downloaded from the internet.
State of New Jersey • The State also has a filing requirement for non profit organizations. • If the organization has <$10,000 in Gross Contributions they are not required to file. If they do file there is a $30 fee. • The requirement is for >$10,000 up to $25,000 in Gross Contributions. File Form CRI-200 and pay a $30 fee.
State of New Jersey • If the Gross Contributions are >$25,000 then Form CRI-300R is required and the fee varies based on the revenue. • In addition, revenue over $250,000 requires an audit to accompany the return. • Any of these returns are due within six months of the organizations year end. • Extensions with Form CRI-400 are available for an additional six months.
Annual Report • State requirement since local chapters are incorporated • Online filing and payment of $25 fee is required • Annual reminder form should be sent by the state to the registered agent • Website to file www.nj.gov/njbgs • Status website https://accessnet.state.nj.us/home.asp
Games of Chance • All fundraising activities where a raffle, bingo, 50/50, or other games of chance require registration both annually and per event • A separate bank account is required to be maintained for these proceeds and expenses • NJ Division of Consumer Affairs, Charities Registration handles these matters • Must meet the requirements, since reduced to 5 board members from 25 • Website www.state.nj.us/lps/ca/ocp/charities.htm
Acknowledgements • Some of the pages enclosed are directly from the Internal Revenue Service website at www.irs.gov . These pages may change periodically and this document may not be considered a guide. Please seek competent advice from their tax professional. • Any questions or comments should be directed to: Douglas D Ziegler III CPA 5 Susie Lane Jackson, NJ 08527 T. 732-833-8504