Revenue Minimum for 501(c)(7) annual 990 return

[Peggy Cobb]

I had a new client approach me about doing their club's annual tax return. They were under the impression that when their total revenue was more $10,000 that because they were a 510©(7) that they needed to file a 990. I have read through the 990-EZ instructions and don't see any mention of revenue more than $10,000 requiring a 990. I see the usual minimum for non-profits of $25,000. In 2006 it was $23,000 and I filed an extension on May 15th so I could research this.

Am I missing something? I don't want to look more dumb than normal.

Thanks,

Peggy Cobb

Mount Vernon, WA

[OldJack]

I believe the amount is as you say $25,000. However, the 2006 Pension Act provides that for years beginning after 2006, an organization excepted from filing form 990 due to gross receipts of less than $25,000 is required to annually furnish electronically to the IRS information about the organization [2006 Small Business Quickfinder Handbook page E-1]. Exactly how and what information is to be transmitted electronically I don't know.

[kcjenkins]

It's going to be done on a new short form called an epostcard, Jack. But as you say, not until the 2007 tax year, so we'll be filing them in 2008.

[OldJack]

Thanks KC for the info on epostcard. I guess that will be something the organization can do online direct with the IRS without an efiler?

[kcjenkins]

That is what they are saying, although whether it's ready on time is anyone's guess. :wub: