IRS gives tax-exempt organizations a reprieve —
until October 15, 2010.
According to a recent IRS press release, “Small NPOs 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…”
There is a special page on the IRS.gov website where you’ll find a list of those organizations that are at risk of losing their tax-exemption along with information about the necessary steps to take to regain their tax-exempt status.
The IRS Commissioner Doug Shulman said, “We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption…”. “So if you do not have your filings up to date, now’s the time to take action and get back on track.”
According to the press release, this same relief is not available for larger organizations (over $25K budget size) that must file 990s or to private foundations that file Form 990PF.
Why is this important?
According to the IRS, “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.”
Would you want this to happen to your agency? Your funders and donors wouldn’t be happy! Your hard-earned revenue could be considerably diminished if you had to pay taxes on it — even for a short period. Why take the chance. Check to be sure you’re not risking your tax-exemption. Go to www.irs.gov!