"Its best to comply than to pretend to be unaware"

What is a Gross Receipts Test?

The determination of which IRS form your local association is required to file is based on the Gross Receipts Test, which looks at a three-year average to determine the association "normal" gross receipts. The gross receipts amount is calculated by totaling all income received during each calendar year before any costs or expenses are deducted. Carryover amounts such as savings accounts and any other funds on hand at the beginning of the calendar year are not included.

Its recommended that 990 be filed no later than 5 months after closing of financial books.

Gross Receipts Test For Calendar Years 2008 through 2011

   2011      $ _________ (Filed within 5 months of closing of financial year)

   2010      $ 990 Filed

   2009      $ 990 Filed

   2008      $ 990 Filed

   2007      $ 990 FILED

   2006      $ 990 FILED

        Total $____________ divide by 3 equals $ ___________

        Average Equals   $_____________

In 2010, the IRS wanted all "tax exempt" organizations to file Form 990, 990e-Card or Form 990EZ regardless of amount of their gross receipts. This was done so that organizations on the bubble of losing tax exempt status could maintain its status. Filing deadline was extended several times, with final filing date of 17 October 2010. IRS is still "revoking" tax exemptions of nonprofit organizations on a monthly basis.
Talk in the nonprofit community is....organizations operating without "tax exemption or IRS Determination Letter" will be looked at on a state by state basis. IRS now has access to all states "nonprofit" databases and other means of finding organizations who think they are beneath the radar of visibility. Sometime in 2012, IRS will begin contacting those organizations.
Non-exempt taxable organizations were not granted any extensions for 2010, unless proper extension form was submitted to IRS for approval.

Is the average greater than $25,000?
Then file Form 990EZ.
Otherwise, file Form 990N (e-Postcard).

Is the average greater than $50,000?
Then file Form 990EZ.
Otherwise, file Form 990N (e-Postcard).

To simplify the above calculations, an OpenOffice.org Calc or LibreOffice in XLS format can be viewed at the below link
IRS Gross Receipt Test