Internal Revenue Service (IRS) Employee Plans Compliance Unit conducted a
project related to 403(b) plan sponsorship eligibility for organizations that
lost their 501(c)(3) exempt status due to the automatic revocation for not
filing a required return for three consecutive years.
entities were unaware that their 501(c) status affected their eligibility to
sponsor a 403(b) plan.
all entities exempt from federal income tax under Internal Revenue Code Section
501(a) are required to file an annual return reporting their operations and
activities under Internal Revenue Code (IRC) Section 6033. Exempt entities must
file an annual notice with the IRS using a Form 990 series return (IRC Section
6033(j) as added by the Pension Protection Act of 2006). The exempt status of
entities that don’t file a required return or notice for three consecutive
years is automatically revoked.
Internal Revenue Service issued a reminder for tax-exempt organizations that
many have a filing deadline for Form 990-series information returns in mid-May.
Form 990-series information returns and notices are due on the 15th day of the
fifth month after an organization’s tax year ends. Many organizations use the
calendar year as their tax year, making Thursday, May 15, the deadline for them
to file for 2014.
Pension Protection Act of 2006 mandates that most tax-exempt organizations file
annual Form 990-series informational returns or notices with the IRS. The law,
which went into effect at the beginning of 2007, also imposed a new annual
filing requirement on small organizations. Churches and church-related
organizations are not required to file annual reports.
organizations with average annual receipts of $50,000 or less may file an
electronic notice called a Form 990-N (e-Postcard), which asks organizations
for a few basic pieces of information. Tax-exempt organizations with average
annual receipts above $50,000 must file a Form 990 or 990-EZ depending on their
receipts and assets. Private foundations file a Form 990-PF.