All nonprofit entities in the US, including house corporations, are required to file an annual tax return with the IRS. The return is some version of the Form 990 and is due by the 15th day of the 5th month following the close of the fiscal year. For those house corporations that have adopted a fiscal year end consistent with the Fraternity's on June 30, this is due by November 15, 2019.
Nonprofit entities that fail to file the annual return for three consecutive years will have their tax-exempt status revoked. The loss of tax-exempt status means that the entity must operate as a for-profit entity, with its revenue, such as dues and rent, subject to income tax. Unfortunately, several chapters and house corporations have lost their exempt status and are working through an onerous process to regain it. To check if your chapter/house corporation is on the revocation list, visit this page on the IRS website.
If your chapter/house corporation is not on the list, but you know that the tax return has not been filed for one or more years, you should give this your immediate attention. And, we suggest you engage a local tax professional to assist you. The Fraternity may also be able to direct you to assistance if your tax-exempt status has been revoked by contacting Will Shier.
|