NSS CHAPTER REPORTS Q & A
ANNUAL REPORTS FILED 2008 FOR THE YEAR 2007
IRS FILING REQUIREMENT FAQ
What's New about Chapter Reports this Year?
The primary difference is that the IRS has changed the rules for how non-profit organizations file theirannual returns. Under the new regulations, organizations with under $25,000 of revenue have to complete
a new form return, the 990-N. Before, organizations with under $25,000 of revenue did not have to file.
NSS Counsel has advised that all chapters with EIN's should file the new 990-N. This is called the'e-Postcard', because the filing requirements are very slight. The only information chapters need is:
-Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN)).
-Tax year (Jan. 1 – Dec. 31, 2007)
-Legal name and mailing address
-Any other names the organization uses
-Name and address of a principal officer
-Web site address if the organization has one
-Confirmation that the organization’s annual gross receipts are normally $25,000 or less
-If applicable, a statement that the organization has terminated or is terminating (going out of business)
Because of this change, we have altered the form that chapters need to complete. Instead of aGroup Exemption Letter, you will need to sign an Authorization Letter. This is explained more below.
What has not changed?
What has not changed is that all chapters will still be under the non-profit umbrella of NSS HQ, andare recognized as tax-exempt organizations because of that umbrella. All chapters also must file the
same chapter report as they did last year.
What about the Group Exemption Letter?
Due to the new regulations in affect this year, NSS will not file on behalf of its chapters. Yes, this is a
deviation from past filing procedures. NSS chapters are not covered under a group return (but do
retain tax exempt status from NSS), and must file accordingly.
Are you sure we don't have to file anything if we don't have an EIN?
Legal counsel to NSS has advised that chapters without EINs do not need to file. NSS does, however,
require you to complete the NSS authorization form.
Group Exemption Letter, Authorization Letter, what's the difference?
The IRS Group Exemption Letter is completely different from the NSS Authorization Letter. The
NSS Authorization Letter simply affiliates the chapter with the mother organization (NSS), and must
be endorsed by the governing chapter officer. The chapter does not need to complete a
Group Exemption Letter. An expanded FAQ on form 990-N can be found here:
http://www.irs.gov/charities/article/0,,id=177782,00.html
Okay, thanks for the information. Now how do I file?
See below.
FILING REQUIREMENTS
Please read the following very carefully.
If your chapter has its own IRS Employee Identification Number (EIN):
1. Your chapter will complete form 990-N (e-postcard): http://epostcard.form990.org/
2. Your chapter will complete the new NSS Authorization Letter (replacing the Group Exemption Letter).
3. Your chapter will complete the annual NSS chapter report.If your chapter does NOT have its own Employee Identification Number (EIN):
1. You do not need to file any form with the IRS.
2. Your chapter will complete the new NSS Authorization Letter (replacing the Group Exemption Letter).
3. Your chapter will complete the annual NSS chapter report.Additional Questions/Further Explanations
Q. If our chapter does not have an EIN (Employer Identification Number), how do we file and with whom? Are we covered under the NSS umbrella?
A. Almost all chapters have now been assigned an EIN by the IRS. Please check with NSS HQ to confirm your number even if you are not aware of whether your chapter has one.
We recommend that all chapters fill out the online short form (the ‘e-postcard’)on the IRS website. Technically, our understanding is that if a chapter does not have an EIN, they do not need to file.
The new rules require that chapters make this separate filing, though they still are part of the overall NSS corporate structure.
Q. If our chapter does not have an EIN number do we need to apply for one to be considered an official National Space Society Chapter? If yes, what is the procedure?
A. No, you do not need to have an EIN number to be officially considered as an NSS Chapter – many of our international chapters don't have EINs. However, we recommend that you get one if you do not have one. A request for an EIN number is available on the IRS website (we can link to this).
Q. If we have an EIN number and have gross receipts less than $25,000.00 and file with the IRS using the e-postcard method, do we still have to fill out one of the financial reports to send to NSS headquarters.
If so, why?
A. Yes. NSS HQ needs to know how our chapters are doing financially for its fiduciary responsibilities.
Q. Who changed how the chapters must submit their financial reports? Was it mandated by the IRS or is this a change in NSS procedure?
A. Filing requirements were changed by the IRS this year, requiring that groups like NSS chapters file the e-postcard. We at NSSHQ are also changing our internal reporting procedures to make IRS accountability easier and to be better informed about our chapters.
Q. If we are required to fill out a financial report to be sent to NSS headquarters in addition to the financial e- postcard to the IRS, can we use the simplified form supplied to us last year by NSS for those chapters generating less than $25,000 in gross receipts? If not, why not?
A. Yes, NSS HQ only wants simple financial information from our chapters, as long as their total income is less that $25,000. Comprehensive, in-depth financial statements are not needed.
Q. The Group Exemption Letter – We have been filling this out each year with our annual reports. Do we still have to do this? The wording in the letter seems to contradict the new procedure outlined above
A. The letter has been changed to reflect this years filing changes. The Name of the letter has been changed to The Group Exemption Authorization Letter.. See explanation above……..