IRS Warning of Action - Small Organizations (Under $25,000) Required to File Form 990N - Enforcement Begins May 15, 2009

The three-year ‘grace period’ for very small tax exempt organizations to begin filing an annual report to the IRS begins to expire this month, May 15, for organizations required to file by that date.  Prior to 2007 federal legislation, groups with annual gross revenues below $25,000 were not required to file any version of the IRS Form 990.  However, most groups in that category have been required to file the Form 990N (also known as the ‘electronic postcard’)  for fiscal years ending after 2007.  Failure to begin filing this year (by May 15 for groups whose fiscal year ended December 31) will make them subject to automatic revocation of their tax exempt status.

The 990N is a simple one page form that is filed electronically, and contains only eight questions.

For more information or to access the form click here.

Procurement: Minority Business Enterprise Program
Maryland Nonprofits is strongly supports the goals and intent of the state's MBE program.  But numerous situations have come to our attention in recent years of problems created for nonprofit service providers in state contracting by the implementation of the program: problems that we believe were never intended and do little or nothing to advance the program's goals.  We presented this statement of our views and concerns with the MBE program to the Governor's Commission For Minority Business Reform in November 2003 and are continuing to work to resolve these issues.

Reporting Political Contributions

There are two provisions of state law that require business entities, including nonprofit organizations, to file reports of campaign contributions by organization officials under certain circumstances.  The two situations involve organizations that "do public business" and organizations that pay lobbyists.  While these situations may overlap, each requirement has its own reporting thresholds and limited, distinct exceptions for nonprofits.

City Council Action on Energy and Telephone Taxes

On Monday June 21 the Baltimore City Council adopted changes to both the City Telephone and Energy Taxes, increasing or extending both taxes, and removing the nonprofit exemption from each tax.  The telephone tax takes effect August 1 of this year and the energy tax being applied to nonprofits takes effect July 1, 2005, at an effective rate of 6%.

What You Need to Know About the New FCC Rules on Faxing

In July 2003 the Federal Communications Commission issued rules with new requirements and limitations on fax communications. Most noteworthy of these is a requirement for prior, written, specific permission to send faxes with "commercial content."  There are still questions that need clarification, and further FCC action is possible. This Alert summarizes how these changes affect nonprofits.

Nonprofit Organizations and Tax Credit Programs

Under House Bill 1155 of 1998, now Chapter 730 of the Laws of Maryland of 1998, nonprofit organizations that are tax exempt under Sections 501 (c)(3) and (c)(4) may now use these credits against their liability as employers for payroll withholding which is paid to the State Comptroller. This Alert explains

2002 Lobbyist Ethics Legislation

In 2001 the General Assembly adopted legislation making significant changes to laws governing the registration and regulation of "lobbyists."  Maryland Nonprofits targeted several of these issues -- which threatened to discourage nonprofits' participation in the policy process -- as legislative priorities for 2002.