IRS Announces New Reporting Requirements for U.S. Quota Clubs

• For U.S. Quota clubs with income less than U.S. $25,000 per year:
  Previously, clubs whose total income was U.S.$25,000 or less (during their annual accounting period) were not required to file an IRS Form 990 annually. Beginning in 2008, these clubs will be required to submit an annual e-Postcard, Form 990-N. This new form must be filed by the 15th day of the fifth month after the end of your annual accounting period. For an April 30 fiscal year end, which most clubs have, that means your first filing will be due September 15, 2008. If your club already files Form 990 annually, you will not have to complete this new e-Postcard.
  
  We will let clubs know when the procedure for filing the new form is announced—the IRS is currently developing the filing system. It will be an easy form to complete. You will need to provide basic information, such as your club name and address and a statement that your annual gross receipts are still normally U.S.$25,000 or less. There will be no paper form. All clubs must submit the e-Postcard electronically. For clubs that do not have access to the Internet, our staff will be able to assist you.
  
  
• For U.S. Quota clubs with income of more than U.S.$25,000 per year:
  As in the past, your club is required to complete an IRS Form 990 or Form 990EZ if your gross receipts are normally more than U.S.$25,000 in a year. Gross receipts are the total amount received from all sources during your annual accounting period, without subtracting costs or expenses. The IRS form must be filed by the 15th day of the fifth month after the end of your annual accounting period. For an April 30 fiscal year end, which most clubs have, that means your 990 Form must be filed by September 15 each year. Please see the Club Treasurers Manual for details. Copies of the guide are U.S.$15 (price includes standard shipping). To order, contact Ingrid Miller at ingrid@quota.org or 202.331.9694.
  
  
• For U.S. Quota clubs that have set up a charitable trust:
  In addition to filing either an e-Postcard or a Form 990 for your club annually, you will have to file either an e-Postcard or a Form 990 for your charitable trust as well. If your trust's gross receipts are U.S.$25,000 or less, you should file the e-Postcard for the trust beginning next year as described above. If your trust's gross receipts are more than U.S.$25,000, you should be filing a Form 990 each year.
  
  We urge you to watch for our follow-up alerts on this subject in January, March, and September of 2008, as the IRS will revoke the tax-exempt status of any organization that fails to meet its annual filing requirement for three consecutive years. Please contact Foundation Manager Christy Herz at christy@quota.org should you have any questions about the new filing requirements.
  

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