Which of the following statements is false regarding annual information returns?

The statement claiming that organizations for profit can claim exempt status is false. Tax-exempt status is specifically reserved for organizations that meet certain criteria under the Internal Revenue Code, primarily those organized for charitable, educational, religious, or similar purposes. For-profit organizations are designed to operate with the intent of making a profit and do not qualify for tax exemption. This distinction is crucial under tax law, as it affects the tax filings and obligations of various entities.

The other statements are accurate representations of the requirements and consequences related to annual information returns. For instance, Form 990 is indeed required for many exempt organizations, offering transparency about their financial activities. Additionally, organizations with gross receipts of less than $50,000 are not required to file this form, simplifying compliance for smaller nonprofits. Lastly, failing to file the required returns can lead to the revocation of tax-exempt status, impacting an organization’s ability to operate without incurring federal taxes.