IRS deadline catches some nonprofits off guard

Source Kansas City Star

Small nonprofits scurrying Monday to electronically file Form 990-N with the Internal Revenue Service discovered an "extremely busy" system that urged them to try again later. There was no immediate estimate of how many tax-exempt nonprofits with annual incomes of $25,000 or less were subject to the Monday deadline to file information with the IRS, but a flurry of filing attempts came after a last-minute surge of publicity about the Pension Protection Act of 2006. Part of that act mandated that the nation's smallest nonprofits (excluding churches) that weren't required previously to file with the IRS begin filing income information on the 15th day of the fifth month after their tax year ends. There was a three-year grace period to begin filing before imposition of penalties, including loss of tax-exempt status as of the due date of the annual filing.