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Nonprofit Corporations Archives

New Notification Requirements for 501(c)(4) Nonprofit Organizations

As we've previously noted on this blog, a homeowners' association generally meets the requirements to qualify as a social welfare organization under Section 501(c)(4). As a result, homeowners' associations, and all other social welfare and community benefit organizations (e.g., employee organizations and other organizations that promote social community goals) recognized under Section 501(c)(4) should be aware of new notification requirements enacted by Congress. Regardless of whether you intend to become a 501(c)(4) organization or if you were such an organization prior to December 19, 2015, these new requirements will be important for your compliance.

Homeowners' Association as a Social Welfare Organization - IRS 501(c)(4)

Homeowners' Associations, as nonprofit corporations, generally meet the requirements to qualify as a tax-exempt Social Welfare Organization under Internal Revenue Code section 501(c)(4).  Other types of activities may also qualify under Section 501(c)(4), such as bringing about civic betterment or social improvements.

New Regulations for Homeowners' Associations & Other 501(c)(4) Organizations

Homeowners' Associations and other social welfare organization exempt under IRS section 501(c)(4) are subject new regulations.  As part of section 405 of the "Protecting Americans from Tax Hikes Act of 2015", enacted December 18, 2015, certain provisions affect social welfare organizations described in section 501(c)(4) that are established after December 18, 2015 and certain organizations existing on that date.  

Tax-Exempt Status Revoked? (Part 2 of 2)

An automatically revoked nonprofit corporation exemption status can be reinstated. The IRS has principally three categories of reinstatement: Streamlined Retroactive Reinstatement, Retroactive Reinstatement Process within 15 months and Retroactive Reinstatement after 15 months. Reminder: any donations accepted during the reinstatement period are not deductible for the donor nor tax exempt for the nonprofit corporation.

Tax-Exempt Status Revoked? (Part 1 of 2)

A Nonprofit corporation's tax-exempt status is automaticly revocated when a tax-exempt organization does not file an annual information return or notice with the IRS for three consecutive years. Depending upon the organizations tax requirements, the organization must file Form 990, 990-EA, 990-PF or 990-N (e-Postcard) each year. Churches and certain church-related organizations are not required to file the annual information return or notice.

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