Tax-Exempt Organizations Can Preserve Exempt Status by Filing Returns by October 15 Due Date

Tax-Exempt Organizations Can Preserve Exempt Status by Filing Returns by October 15 Due Date

A crucial filing deadline of October 15 is looming for many tax-exempt organizations.  Most tax-exempt organizations, other than churches, must file an annual return or electronic notice (Form 990-N) with the IRS. If an organization does not file as required for three consecutive years, the law provides that it automatically loses its tax-exempt status.

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 October 15, 2010 under a one-time relief program.  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 (e-Postcard), and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.  Find complete information about eligibility and program requirements on IRS.gov.

The IRS has issued a Special Edition Tax Tip and a News Release to help nonprofit organizations take advantage of the one-time relief program and maintain their tax-exempt status. In addition, you can find information you can use to help organizations that may be at risk of losing their tax-exempt status at IRS.gov.

by irs.gov