Automatic Revocation for Not Filing Annual Return or Notice

Most tax-exempt organizations, other than churches, must file a yearly return or notice with the IRS. If an organization does not file as required for three consecutive years, the law provides that it automatically loses its tax-exempt status. Loss of exempt status means an organization must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations.

In general, what must be filed depends on the organization’s financial activity:

Financial activity
Filing requirement
Gross receipts normally ≤ $25,000 ($50,000 for tax years ending on or after December 31, 2010)
Note: Organizations eligible to file the e-Postcard may choose to file a full return.
990-N (e-Postcard)
Gross receipts < $ 200,000 and
Total assets < 500,000
Gross receipts ≥ $200,000, or
Total assets ≥ 500,000
Private foundation (regardless of financial activity)