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Notice To All Tax Exempt Dog Clubs !

NOTICE TO ALL TAX EXEMPT DOG CLUBS AND HUNTING ORGANIZATIONS



Breed clubs and coon, bear and other hunting associations which are formed and operating as non-profits are tax-exempt under Internal Revenue Code Section 501(c)(7) if they meet all requirements. Even though it is good practice to do so, a 501(c)(7) organization is not required to apply to the IRS for a favorable determination letter as to its exempt status. And, prior to 2007 it did not have any annual reporting requirements if its gross receipts (including membership dues) averaged less than $25,000 per year. Average gross receipts are calculated by taking the mean average of the gross receipts for the current year (e.g. 2009) and the preceding 2 years (e.g. 2008 and 2007). From and after 2007 there is a new filing requirement for those groups with under $25,000 in average gross receipts. They must file Form 990-N by May 15 of each year, if they operate on a calendar year basis. The 990-N is called an e-Postcard and is very simple. It asks only for name, Federal ID number, name of a principal officer and his or her address, and mailing address of the organization. You then check a box stating that your average gross receipts are less than $25,000 per year.



URGENT ACTION REQUIRED – If you have not registered your organization and its Federal ID number with the IRS before now, their computer program will not accept a 990-N e-Postcard. An officer of the organization must call the IRS exempt organizations branch at 1-877-829-5500 to register. It usually takes about 2 months for your registration to get into the IRS computer system. Therefore, if you have not already registered, you must now file an extension for your Form 990-N. This is done by filing, on or before May 17, 2010, an Application for Extension of Time to File an Exempt Organization Return (Form 8868). This can be done on-line at www.irs.gov/efile and click on e-file for Charities and Non-profits. But to do this on-line, you have to use an approved e-file provider. If you don’t file on-line, you can print out Form 8868, fill it out and mail a hard copy. The Form 8868 does not have a place to check for a Form 990-N, so you should check the box for Form 990. The extension is for 3 months and is automatic. To obtain the Extension Form 8868 go to the IRS website www.irs.gov , click on Forms and Publications, click on Form and Instruction number. In the “Find” box enter 8868 then click on Find. Below Product Number will appear Form 8868, click on the form and print out Form 8868. When filling out the form, enter the name of the organization, Federal ID number and address. Check the first box on the left “Form 990”. In the space below the form numbers, enter the name and phone number of the person in custody of the books and records. Enter August 16, 2010 on line 1 for an automatic 3 month extension. If you are on a calendar year, check the box for calendar year and enter “09” to the right, otherwise enter your fiscal year. Lines 3a, 3b and 3c should be “0”. Mail to: Internal Revenue Service, Ogden, Utah 84201-0012. This must be postmarked on or before May 17, 2010.



Of course, if you are already registered with the IRS as a tax exempt and average less than $25,000 in gross receipts, you can and should simply file the on-line e-Postcard (Form 990-N) by Monday, May 17th. The deadline is May 15th which falls on a Saturday so you have until Monday. You file the Form 990-N as follows: Go to https://epostcard.form990.org Click on “Create your Form 990-N (e-Postcard)” in Step 2. Enter the login ID and password you received at registration and login. Follow the instructions to “Create your Form 990-N”. Enter the organization‘s name and ID number the mailing address of the organization, the name and address of the principal officer and check the box for “gross receipts are normally $25,000 or less”. Click submit. Click on “View Form 990-N” and print out the Form. IRS will email to you an acceptance or rejection.



THE PROBLEM IS THIS – The rules were changed such that if you fail to file the 990-N (or Form 990 or 990EZ, if required) for 3 consecutive years the organization will lose its tax exempt status immediately. According to the IRS, you will then have to file an application for determination of your tax exempt status (with about an $800 filing fee) in order to regain your exempt status. Monday, May 17, 2010 is the final deadline for those who have not filed any 990-N or other 990 form for calendar year 2007, 2008 or 2009.



If your 501(c)(7) non-profit organization has average gross receipts in excess of the $25,000 per year in 2009 and prior years, you must file Form 990EZ (or if large enough, Form 990). The same rules of disqualification, plus severe monetary penalties, apply for failure to file. Starting in 2010 and thereafter, the $25,000 average gross receipts cut-off for filing the 990-N is raised to $50,000 per year.



Incidentally, please remember that a 501(c)(7) organization can have no more than 35% of its gross receipts from non-members.



If you wish to call the IRS, call the exempt organization branch at 1-877-829-5500. Of if I can answer any questions, call or email me.



Paul Wagner



Paul J. Wagner, Jr.

Paul J. Wagner, Jr., P.C.

4405 Northside Parkway, N.W., Suite 2123

Atlanta, Georgia 30327

Telephone: (404) 233-6740

Fax: (404) 261-2287

Email: pw@wagco.net

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If we're not suppose to eat animals, then why are they made out of meat?