Tax Information Update

Free Tax Return Preparation by Volunteers

Trained community volunteers can help you prepare your taxes to make sure you take advantage of special credits, such as the Earned Income Tax Credit, Child Tax Credit and Credit for the Elderly for which you may qualify. Learn more from IRS Publication 907. http://www.irs.gov/publications/p907
To locate the AARP Tax-Aide site near you call 1-888-227-7669. You may also download Schedule R, http://ftp.irs.gov/pub/irs-pdf/f1040sr.pdf,
the Credit for the Elderly or the Disabled. If you are experiencing a hardship, you may call or write your local Taxpayer Advocate Office for your state http://www.irs.gov/advocate/content/0,,id=150972,00.html,
or call the Taxpayer Advocate Service Toll-free Case Intake Line at 1-877-777-4778 or TTY/TTD 1-800-829-4059.

New IRS Rules for Tax Reporting by NonprofitsYou may already be aware that the Internal Revenue Service substantially changed the Form 990 tax return that is required to be filed by nonprofit organizations. The new Form 990 is applicable for returns covering tax years beginning in 2008 or later. What you may not know, is that the new form is being phased in over three years.For the 2008 tax year (e.g. fiscal years that began in 2008), you must use the new Form 990 if you have gross receipts of $1 million or higher or total assets of $2.5 million or higher. If you fall below this threshold and your gross receipts were more than $25,000 but less than $1 million, your assets were less than $2.5 million and you do not manage any donor advised funds, you may use the shorter, simpler Form 990 EZ. If your annual receipts are below $25,000 you must instead file the Form 990 N, a new electronic postcard required for all small nonprofits. Before using the shorter Form 990 EZ you should double check your state's requirements for registration as a charitable organization. Some states may still be requiring the long form.
Even if you don't have to file the new Form 990 for your 2008 tax year, you may need to do so in the future. The threshold for using the new form will be lower for tax year 2009 and even lower for tax year 2010. Visit the IRS website at http://www.irs.gov/charities/article/0,,id=184445,00.html for a table that shows which form you need to use each year.
If you have questions, feel free to email berns@thearc.org.