[StBernard] IRS issues notice that many Local Non-Profits are At Risk of losing their tax-exempt status if they don't take action by Oct. 15

[Westley Annis]

FYI --- 

There are several non-profit groups in St. Bernard in danger of losing their
tax-exempt status. This is the link on the IRS website to see if your group
is on the list: http://www.irs.gov/pub/irs-tege/la.pdf. The link also is
attached.

 

 


IRS Offers One-Time Special Filing Relief Program for Small Charities; Oct.
15 Due Date to Preserve Tax-Exempt Status

 

Video: Small Tax Exempt Org Revised Filing Deadline
<http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A%2F%2Fwww.youtube.com%2
Fwatch%3Fv%3DiLEcaDAoybc> 

IR-2010-87, July 26, 2010

WASHINGTON - Small nonprofit organizations at risk of losing their
tax-exempt status because they failed to file required returns for 2007,
2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010,
under a one-time relief program, the Internal Revenue Service announced
today.

The IRS today posted on a special page of IRS.gov
<http://www.irs.gov/charities/article/0,,id=225889,00.html>  the names and
last-known addresses of these at-risk organizations, along with guidance
about how to come back into compliance. The organizations on the list have
return due dates between May 17 and Oct. 15, 2010, but the IRS has no record
that they filed the required returns for any of the past three years.

"We are doing everything we can to help organizations comply with the law
and keep their valuable tax exemption," IRS Commissioner Doug Shulman said.
"So if you do not have your filings up to date, now's the time to take
action and get back on track."

Two types of relief are available for small exempt organizations - a filing
extension for the smallest organizations required to file Form 990-N,
Electronic Notice
<http://www.irs.gov/charities/article/0,,id=169250,00.html>  (e-Postcard)
<http://www.irs.gov/charities/article/0,,id=169250,00.html>  , and a
voluntary compliance program (VCP) for small organizations eligible to file
Form 990-EZ <http://www.irs.gov/pub/irs-pdf/f990ez.pdf> , Short Form Return
of Organization Exempt From Income Tax.

Small organizations required to file Form 990-N simply need to go to the IRS
website, supply the eight information items called for on the form, and
electronically file it by Oct. 15. That will bring them back into
compliance.

Under the VCP, tax-exempt organizations eligible to file Form 990-EZ must
file their delinquent annual information returns by Oct. 15 and pay a
compliance fee. Details about the VCP are on the IRS website
<http://www.irs.gov/charities/article/0,,id=225702,00.html> , along with
frequently asked questions
<http://www.irs.gov/charities/article/0,,id=225954,00.html> .

The relief announced today is not available to larger organizations required
to file the Form 990 or to private foundations that file the Form 990-PF.

The IRS will keep today's list of at-risk organizations on IRS.gov until
Oct. 15, 2010. Organizations that have not filed the required information
returns by that date will have their tax-exempt status revoked, and the IRS
will publish a list of these revoked organizations in early 2011. Donors who
contribute to at-risk organizations are protected until the final revocation
list is published.

The Pension Protection Act of 2006
<http://www.irs.gov/charities/article/0,,id=161145,00.html>  made two
important changes affecting tax-exempt organizations, effective the
beginning of 2007. First, it mandated that all tax-exempt organizations,
other than churches and church-related organizations, must file an annual
return with the IRS. The Form 990-N was created for small tax-exempt
organizations that had not previously had a filing requirement. Second, the
law also required that any tax-exempt organization that fails to file for
three consecutive years automatically loses its federal tax-exempt status.
The IRS conducted an extensive outreach effort about this new legal
requirement but, even so, many organizations have not filed returns on time.

If an organization loses its exemption, it will have to reapply with the IRS
to regain its tax-exempt status. Any income received between the revocation
date and renewed exemption may be taxable.