FAQ: 990N/Revocation

CFSA has just completed additional research to help you with your next steps when you have been revoked or need to restore your local.  Each local has two choices should you find yourself revoked.

Choice 1:  Retroactive Reinstatement

Should you choose Choice 1; apply for Retroactive Reinstatement citing Reasonable Cause — call the home office for more guidance on this matter @860.436.3222.

Choice 2:  Reinstatement Process (see below).


Should you choose “Choice 2” what is the outcome of reversing your automatic revocation?

Your administrator’s group will remain on the auto-revocation list after it has been restored. Why? In part because, the auto-revocation list is an IRS official record of organizations whose tax-exempt status has been automatically revoked for running out to file a required return or notice for three successive years. Nevertheless, the IRS puts out updates to its records every few weeks, and hopefully it will come off the list at some period.

When is your local supposed to file the 990?

You must file your 990, 990-EZ, 990-N, or 990-PF by the 15th day of the 5th month after your accounting period ends. So, if your fiscal year ends on December 31, the 990-N is due on May 15 of the following year.

What is a 990?

IRS Form 990 is the tax document that tax-exempt nonprofit organizations file each year with the IRS. The 990 allows the IRS and the public to evaluate nonprofits and how they operate.

How do we define the local’s level of reporting?

Locals with gross receipts of $50,000 (as of Jan 2010) or less must file the new form, electronic 990-N (e-Postcard) in order to keep their exempt status.

How to file Form 990-N

As a local with tax-exempt status you are required to file an annual return. Which form your local must file generally depends on its financial activity, as shown in the chart below.

To electronically submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990EZ, use the Form 990-N Electronic Filing system (e-Postcard).

All organizations are required to register at IRS.gov prior to filing Form 990-N. You won’t be asked to register again the next time you file.

Form 990-N must be completed and filed electronically. There is no paper form.

Form 990-N filers may choose to file a complete Form 990 or Form 990-EZ instead.

Use the Form 990-N Electronic Filing System (e-Postcard) User Guide while registering and filing.

For filing system and website issues, refer to the second question on the How to File: Frequently Asked Questions page.

 When and why does revocation occur?

If you do not file your annual electronic filing requirement for small businesses on time, the IRS will send you a reminder notice. There is no penalty assessment for late filing the e-Postcard, but an organization that fails to file required e-Postcards (or information returns – Forms 990 or 990-EZ) for three consecutive years will automatically lose its tax-exempt status. The revocation of the organization’s tax-exempt status will not take place until the filing due date of the third year. Watch the IRS YouTube presentation.

We want to reinstate our local because we were recently revoked by the IRS for non reporting compliance; what do we do?

You have selected to reinstate your tax exempt status, please follows these steps OR follow these steps to stay on task and in compliance (Follow Steps 1 – 3):

Step 1: Identify who will process these tax returns on an yearly base

Step 2: Define your local’s fiscal year end date; you must file annually.

Step 2a: Locate which form is applicable to your local access this link for the threshold chart. Most of you will use Form 990-N Electronic Filing system (e-Postcard).

Step3: Implement a self-verification process to attain sure you are not at danger for automatic revocation. Ex. Access this link on a biannual basis http://apps.irs.gov/app/eos/ to learn your Exempt Organization Status.

Step 3a: Begin the actual reinstatement process by completing the following

Forms: 1024 http://www.irs.gov/pub/irs-pdf/f1024.pdf

Form: 8718 http://www.irs.gov/pub/irs-pdf/f8718.pdf online

Step 4 a: Complete all forms and attached your identified fee rate; this is important otherwise the IRS will not recognize the application for reinstatement as complete.

For more information select from the grid below and give us a call!

Staff Names Extension Cellular Direct Dial
Frances G. DiFiore 860.436.3222 860.759.8235 860.785.8649
Dr. Anthony Salvatore 860.436.3222 860.759.8236 860.785.8648