Nonprofit Officers Will Find Something New in Their Annual IRS Filings on May 15th — The Possibility of Legal Action for Avoiding State Registrations

Martignetti noted that the new Form 990 -- signed under penalty of perjury by an officer -- makes it impossible to legally avoid state registrations because it calls for a list of the states in which a copy of the Form 990 is required to be filed.

"You can only answer that, however, after you research every state, figure out where to register, then search out whether those states require your 990," Martignetti said. "A question on Schedule G asks where 'the organization is registered or licensed to solicit funds or has been notified it is exempt from registration or licensing.' Again, a substantial and time-consuming amount of research is required to confidently respond."