Most often a nonprofit organization – in order to carry out its mission – not only desires approval by the Internal Revenue Service as a tax exempt organization for federal income tax purposes but once received also wishes to avoid revocation of that status for failure to comply with the ongoing requirements. The consequences of revocation can be significant and include: the requirement to begin paying federal corporate income taxes, penalties for past taxes, state taxes, loss of donor contributions due to a donor's loss of the federal personal tax deduction, and more.
As important as 501(c)(3) is, many nonprofits appear to be unfamiliar with the ongoing requirements for keeping that status. One requirement involves the annual filing by May 15 of either Form 990-N, Form 990, or Form 990-EZ. Some of the other activities that may place that 501(c)(3) status in jeopardy involve: departing from the nonprofit's mission, engaging in unrelated activities that do not support the mission of the nonprofit, having excessive unrelated business income, engaging in political activity, and so on. This is only a partial list of potentially troublesome areas, and in fact, when it comes to not filing a Form 990, the problem has been so pervasive that in the past the IRS has conducted special outreach programs to prevent the revocation of the tax exempt status of thousands of nonprofits around the country. The Internal Revenue Service takes its responsibilities seriously, and nonprofits should not underestimate the enforcement efforts of the IRS.
Please join Jennifer L. Urban, founder of Legal for Good PLLC, as she discusses various causes for 501(c)(3) revocation by the IRS and offers guidance for avoiding these pitfalls.
What You'll Learn
Just a sampling of what this webinar will cover:
- Review Form 990 reporting requirements and deadlines.
- Understand the importance of good recordkeeping for Form 990 filing and other compliance purposes.
- Discuss the nature of the information that you must report depending on whether you file a Form 990-N, Form 990, or Form 990-EZ.
- Discuss reasons for 501(c)(3) tax exempt status revocation including: failure to file Form 990, unrelated business income, departure from the nonprofit mission, providing both insiders and outsiders with personal benefits, and others.
- 501(c)(3) status revocation is one penalty for noncompliance. Understand what other penalties may be assessed and the circumstances in which these "intermediate sanctions" may apply.
- Find out how to reapply for 501(c)(3) status if your tax exempt status is revoked.
- AND MUCH MORE!
Your Conference Leader
Your conference leader for “Tax Exempt Status: How to Avoid 501(c)(3) Status Revocation" is Jennifer L. Urban. Jennifer is the founder of Legal for Good PLLC and devotes herself to representing charitable and nonprofit organizations throughout Minnesota and Ohio. Jennifer routinely assists charitable organizations and individual donors with a variety of matters, including crisis management; fiscal sponsorship; nonprofit formation; 501(c) tax-exemption; merger, asset transfer, consolidation, and dissolution; nonprofit consulting, training, and best practices; grant compliance and financial management; property tax exemption; sales tax exemption; nonprofit-related litigation; charitable solicitation and professional fundraising; government compliance and regulatory issues; and document review and creation. She is a graduate of the University of Wisconsin-Madison, as well as Ohio State University Moritz College of Law. After graduation, Jennifer served as a judicial law clerk to the Honorable Peggy L. Bryant, Tenth District Court of Appeals for the State of Ohio. Before transitioning to private practice, she served four years as an assistant attorney general at the Office of the Ohio Attorney General in the Charitable Law Division. Jennifer is active in the Minnesota and Ohio legal communities. She enjoys speaking at legal education seminars, directing the Nonprofit Law Clinic at the University of St. Thomas School of Law, and being a member of numerous prominent local legal organizations.