Attention - All Lions Clubs in District 2-E2:
Lions Clubs have a new IRS filing requirement. It’s short, easy and electronic – it’s the new E-Postcard.
With the enactment of the Pension Protection Act of 2006, small tax-exempt organizations, including all Lions Clubs, that previously were not required to file returns will now be required to file an annual electronic notice: Form 990-N. If your club has been filing the IRS Form 990 or Form 990EZ, you will continue to do so in the same manner that you have been doing. Previously clubs whose gross receipts were less than $25,000 were not required to file a tax return with the IRS. Now all tax exempt entities will be required to file.
How do you know if your Lions Club has a filing requirement? If you are a small tax-exempt organization that normally has annual gross receipts of $25,000 or less and does not have to file Form 990 or 990-EZ, you must file the e-Postcard (also known as 990-N).
The e-Postcard is due by the 15th day of the fifth month after the close of your tax year. Lions Clubs operate on a fiscal year, July 1 – June 30, and the e-Postcard will be due by November 15, 2008.
On the e-Postcard your club needs to provide:
· a legal name and mailing address and any other names used,
· a Web address if one exists,
· employer identification number (EIN),
· organization's annual tax period,
· the name and address of a principal officer, and
· a statement confirming the organization's annual gross receipts are normally $25,000 or less.
If you don’t file, you risk losing your tax-exempt status. Any Lions Club that fails to meet its annual reporting requirement for three consecutive years automatically loses its tax-exempt status under the new law.
Most clubs that have not been filing may not have an Employer Identification Number. The EIN number is simply an identification number assigned to identify your club. To get the number, you may simply contact the IRS at their website www.irs.gov. Type EIN in the search column and it will prompt you on how to obtain your number. It’s free and will not take long. You can also call customer service at 1-877-829-5500 .
The e-postcard (Form 990N) will be filed electronically and does not require a paper form. It is internet based and does not require special software. If you do not have access to a computer, you can file at your local library.
All Lions clubs are exempt from federal income tax under IRS code section 501(c) 4.
However remember that all clubs must file this report. Again, once you have obtained your EIN number go to the IRS website: www.irs.gov/eo. Follow their prompts. It is supposed to be fast and free and will soon become routine as all clubs will file this form every year. There is also information about the filing requirements at the Lions Clubs website at www.lionsclubs.org/EN/content/resources_broch_legal.shtml, scroll about halfway down the page to TAX. For additional information, go to www.irs.gov/charities/index.html.
Don’t throw away your tax-exempt status – file your club’s e-Postcard.
IRS 990 Summary
IRS 990 Instructions
