IRS Extends Filing Deadline for 990-N and 990-EZ Filers

IRS Extends Filing Deadline for 990-N and 990-EZ Filers

Tax-exempt organizations that have not filed a Form 990 since 2007 remain in danger of losing their tax-exempt status. For calendar year organizations, the first date of automatic revocation began May 17, this year. However, due to the large number of nonprofits still out of compliance, the IRS has granted a one-time special filing extension. As a result, organizations now have until October 15, 2010 to file and retain tax-exempt status. This extension applies to filers of both Form 990-N and 990-EZ.

“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.”

List of At-Risk Organizations.
The IRS has posted a new page on its website that names the last-known addresses of organizations at risk of losing their tax-exempt status for failure to file the required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program. Organizations on the list have until October 15th to bring themselves into compliance. Note that organizations who have failed to file Form 990 for three consecutive years are at risk of losing their tax-exempt status regardless of whether they appear on this list.

Relief
Two types of relief are available for small exempt organizations – a filing extension for the smallest organizations required to file Form 990-N, and a Voluntary Compliance Program for small organizations eligible to file Form 990-EZ. To comply, small organizations required to file Form 990-N should go to the IRS website, complete the form, and electronically file it by Oct. 15, 2010.

Under the Voluntary Relief Program, larger tax-exempt organizations eligible to file Form 990-EZ (but not eligible to file Form 990-N) must file their delinquent annual information returns by October 15 and pay a compliance fee which is between $100 and $500 depending upon the organization’s revenues. Details about the VCP are on the IRS website , along with frequently asked questions.

Note that the relief program is not available to larger organizations that are required to file the Form 990 or the Form 990-PF.

Donations to At-Risk Organizations. The IRS will keep today’s list of at-risk organizations on its website 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. Contributions from donors who contribute to at-risk organizations will qualify for the charitable contribution deduction until the final revocation list is published.

For more information, check out the IRS’ You Tube video on the topic.