NOTE: the $50,000 gross receipt threshold is calculated by the average of the current tax year s gross receipts and its two prior years.

Transcription

1 PURDUE UNIVERSITY COOPERATIVE EXTENSION SERVICE Dubois County February 28 th, 2017 Dear 4-H Volunteer, This letter provides information to help your 4-H Club or 4-H Affiliate meet the Internal Revenue Service (IRS) reporting requirements for the 2016 tax year. These requirements apply to all 4-H Clubs and 4-H Affiliates included under the Purdue Group Exemption Number (PU GEN), If you have questions regarding filing, please contact the County Extension Office. Please do NOT call the IRS directly! ***Each 4-H Club and 4-H Affiliate is required to file with the IRS annually in order to maintain its federal tax exempt status and to avoid possible significant financial penalties for failure to file.*** If your 4-H Club or 4-H Affiliate s annual gross receipts are: * $0 up to $50,000 file Form 990-N, Electronic Notice (e-postcard) for Tax-Exempt Organization (these groups are not Required to File Form 990 or 990-EZ). * More than $50,000 file Form 990, Return of Organization Exempt from Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt from Income Tax. Filing these forms should be completed with the assistance of a professional tax advisor. Be sure to include the 5924 GEN on the Form 990. NOTE: the $50,000 gross receipt threshold is calculated by the average of the current tax year s gross receipts and its two prior years. Timeline for filing: all eligible and qualifying organizations, which have been operating for at least one year, must file the appropriate 990 form by May 15th, 2017 (the accounting year for all 4-H Clubs and 4-H Affiliates that are a part of the PU GEN is January 1 through December 31). Please refer to the attached document, IRS 990-N e-postcard Filing Instructions for 2016 Tax Year, for step-by-step instructions to complete the filing requirements. NOTE: over the past couple of years, several 4-H Clubs and 4-H Affiliates have received notification that their federal tax exempt status has been revoked by the IRS due to the organization s failure to file an annual return with the IRS. 4-H Clubs and 1482 Executive Blvd. Suite A Jasper, IN (812) Purdue University, Indiana Counties and U.S. Department of Agriculture Cooperating An Affirmative Action/Equal Opportunity Institution

2 4-H Affiliates who have filed annually and who have maintained records of their filing (or unsuccessful attempts to file) are able to successfully prove their compliance with the IRS filing requirements. 4-H Clubs and 4-H Affiliates who have neglected to file annually with the IRS or who have not maintained records of their filing (or unsuccessful attempts to file) are faced with the loss of their federal tax exempt status and with substantial financial penalties imposed by the IRS, which they cannot afford! If you have questions regarding these procedures, please contact the County Extension Office for assistance. Please do NOT contact the IRS directly. Thank you for your assistance in complying with the annual IRS filing requirements prior to May 15th! Sincerely, Jennifer Monarch McGuire Extension Educator 4-H Youth Development Enclosure: IRS 990-N e-postcard Filling Instructions for 2016 Tax Year

3 Steps for filing the 990-N e-postcard include: IRS 990 N e Postcard Filing Instructions for 2016 Tax Year Jan, 2017 Visit Select Filing from the main menu near the top of the page. Select Charities and Non-Profits (from the left column). Click on the Annual Electronic Filing Requirement for Small Exempt Organizations Form 990-N (e- Postcard) to find instructions for the annual electronic filing requirement for small tax exempt organizations. 1

4 From this page, go to the How to File box to find the link to file an e-postcard (Form 990-N). Next, you will choose between two options: Option 1. If you have not filed an e-postcard on the IRS Site previously, you will select First Time Users (even if you have filed an e-postcard on a different site previously). Option 2. If you have filed an e-postcard on the IRS Site previously, you will select Returning Users (go to p. 7). OPTION 1: Follow these instructions for FIRST TIME users Click Get Started 2

5 Verify Your identity IRS 990 N e Postcard Filing Instructions for 2016 Tax Year Jan, 2017 Enter your first and last name and a valid address. After you click Send Code, you ll see this screen. Wait for a confirmation code to come to your inbox (check your junk mail if you don t receive the in a few minutes). Enter that code in the box provided, and click continue. Create a User ID and Password (following the rules provided). 3

6 Enter a primary (a secondary is optional). Select a unique phrase, site phrase, and site image. Select a picture to represent your profile Select four challenge questions and type your answers. HINT: WRITE DOWN THE INFORMATION YOU ENTER AND KEEP IT IN A SAFE PLACE (that you ll be able to find each year). 4

7 Create an e-postcard Profile IRS 990 N e Postcard Filing Instructions for 2016 Tax Year Jan, 2017 Once your profile is created, select MANAGE E-POSTCARD PROFILE under your e-postcard Profile. Volunteers should designate the e-postcard Profile as Exempt Organization. 5

8 Add the EIN of the organization for which you are filing the e-postcard. Once you add your EIN, you should be able to see all EIN(s) associated with the profile. *THIS IS THE END OF OPTION 1. PLEASE GO TO P. 8* 6

9 OPTION 2: Follow these instructions for RETURNING users Enter the Username you created the first time you set up your profile, then click Login. (If you forgot your Username, click on the link underneath the Login button and follow the instructions provided.) After you login, you ll be asked to verify your Site Image and Site Phrase, then enter your password. (If you forgot your Password, click on the link underneath the Password box.) Once you are logged into the system, click on the Manage Form 990-N Submissions button. *THIS IS THE END OF OPTION 2. YOU ARE READY FOR THE INSTRUCTIONS ON P. 8.* 7

10 *At this point, Option 1 and Option 2 should be following the same instructions.* Follow the directions provided to file the e-postcard. o Select Create New Filing at the bottom of the page. o Select which profile you are filing for and press continue. o Answer the Organizational Information questions on the e-postcard page. Has the organization terminated or gone out of business? Are your gross receipts normally $50,000 or less? 8

11 On the next page you will be able to identify a DBA name. Many times the organization s legal name will be listed as Trustees of Purdue University. A DBA (Doing Business As) Name for the organization may be entered here (which would be the actual 4-H Club or 4-H Affiliate name). Enter the organization s mailing address, city, state, zip code (we recommend using the Extension Office address). Enter the name and address of the organization s Principal Officer (4-H Club Volunteer). (Again, we recommend using the Extension Office address.) 9

12 Submit the filing (1) Submit your Form 990-N (e-postcard) a. Click Submit Filing button, then OK (when you are ready to submit). b. You ll have the chance to save your information and then submit the e-postcard to the IRS. Save (or print) as an electronic PDF file. (2) Print and/or save an electronic copy of this notification in your 4-H organization s tax records and also provide a copy of the notification to the County Extension Office. 10

13 When you click on the Print button from the previous screen, you ll receive a copy of your e-postcard that you can print and/or save. It will look something like this: Was your filing successful? Log back into your profile on the IRS site and select Manage Form 990-N Submissions. 11

14 You will then be able to see the status of your filing. The status will be either approved, rejected, or pending. Click on the link under the Submission ID heading for additional information about your filing status. Print this information for your records and provide a copy to the Extension Office. Notification of a Rejected Filing: Some 4-H Club and 4-H Affiliates may have their 990-N rejected by the IRS. This could be for a variety of reasons. One of the most common is that, although the organization is eligible for inclusion under the Purdue GEN, its record has not yet been listed or recognized by the IRS under the Purdue GEN. You may also receive notification that the IRS cannot determine the organization s fiscal year. Another common reason is failure by the organization to file an e-postcard annually. What do you do if your filing is rejected? If your 4-H organization is NOT able to successfully file a 990-N, please follow these steps: Do NOT call the IRS directly as the instructions provided by the IRS in the rejection notice recommend. Print the notification that you receive indicating the IRS has rejected the e-postcard filing or that it does not recognize the 4-H organization s EIN or its tax filing year. Keep a copy of this printed notification in your 4-H organization s tax records and also provide a copy of the filing notice to the County Extension Office. No further action is needed. Documentation: All organizations must keep documentation from the IRS in their files for a minimum of seven (7) years including confirmation of successful filing and documentation of unsuccessful attempts to file the 990-N. Questions: If you have questions regarding these procedures, please contact the County Extension Office for assistance. Please do NOT contact the IRS directly. 12