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Small charities may file overdue tax-exempt papers by Oct. 15
By Ainslee S. Wittig/Arizona Range News
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, said Bill Brunson, Internal Revenue Service spokesman.
The IRS has posted the names and last-known addresses of these at-risk organizations at www.irs.gov/charities. Click on the article announcing one-time filing relief. There is also 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, Brunson said.
"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 (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.
Small organizations required to file Form 990-N 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 (www.irs.gov), along with frequently asked questions.
The relief announced in July is not available to larger organizations required to file the Form 990 or to private foundations that file the Form 990-PF.
Brunson said the IRS will keep the 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 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.
According to the IRS, theses area non-profits are in danger of losing their tax-exempt status (some of these organizations may no longer exist):
Friends of Whitwater Draw, Elfrida
Geronimo Monument Inc., Portal
High Lonesome Fire Dept., Elfrida
Jericho Faith Center Inc., Willcox
Jehoshua Tree Charitable Trust, Frick Alan, GTTEE, Bowie
Keith Boltz Charitable Remainder Unitrust, Austin Josiah, GTTEE, Pearce
Angel to Angel Network, Dragoon
Apacheria Nature Cultural Center, Dragoon
Bowie Health Services Inc., Bowie
Chiricahua Ambulance Service Inc, Willcox
Cochise Cemetery Assn., Cochies
Community Organized Protection of Sunsites, Pearce
El Dorado Community Center, Willcox (Dos Cabezas)
Elfrida Domestic Water Users, Elfrida
Family Watch, Patagonia
Free & Accepted Masons of AZ Prince Hall Grand Lodge, Mt. Pleasant, Willcox
Free & Accepted Masons of Prince Hall Grand Grand Masters Conference National, Mt. Pleasant Lodge 20, Willcox
Pearce-Sunsites Chamber of Commerce, Pearce
R&R Ranch and Education Center Inc, Buckskin Ranch Education Center, Willcox
Sulphur Springs Valley Chamber of Commerce, Elfrida
Sunizona-Ash Creek Community Assn. Inc., Pearce
Valley Telephone Cooperative, Inc., Willcox
VFW Post 9977 Men's Auxiliary to VFW Post, Pearce
Willcox Community Impact Group, Inc., Willcox
Willcox Regional Economic Development Alliance, Willcox
The IRS has posted the names and last-known addresses of these at-risk organizations at www.irs.gov/charities. Click on the article announcing one-time filing relief. There is also 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, Brunson said.
"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 (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.
Small organizations required to file Form 990-N 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 (www.irs.gov), along with frequently asked questions.
The relief announced in July is not available to larger organizations required to file the Form 990 or to private foundations that file the Form 990-PF.
Brunson said the IRS will keep the 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 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.
According to the IRS, theses area non-profits are in danger of losing their tax-exempt status (some of these organizations may no longer exist):
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