All Supporting Organizations Must File Form 990

The Pension Protection Act of 2006 ("PPA") amended certain provisions of the Internal Revenue Code (the "Code") pertaining to filing annual returns (Forms 990) with the IRS. PPA amendments require ALL tax-exempt organizations that are described in Code section 509(a)(3) ("Supporting Organizations") to file annual returns even if the IRS previously excepted an organization from filing. Prior to the PPA, Code section 6033(a)(3)(B) authorized the Treasury to except certain organizations from filing Form 990. The PPA revoked this discretionary authority with respect to Supporting Organizations.

Churches and their integrated auxiliaries, church conventions, and church associations remain immune from these filing requirements. While relatively small organizations (less than $25,000 in gross receipts) are not required to file Form 990, the PPA now requires such organizations to provide abbreviated reports to the IRS on an annual basis.

PLEASE NOTE: If the IRS previously excepted your organization from filing Form 990 AND your organization is a Supporting Organization (other than a church entity), the PPA now requires your organization to file Form 990 or the abbreviated report with the IRS. This amendment applies to returns filed for tax periods ending after August 17, 2006. For organizations with tax periods ending on December 31, 2006, Form 990 (and corresponding schedules) must be filed with the IRS by May 15, 2007.

Additional information with respect to Form 990 requirements can be obtained online from the IRS.