In our final follow-up/ announcement concerning a subject we (and many others) have periodically discussed over the last year, the IRS has established 15 October (in but one week!) as the deadline for all tax-exempt nonprofits and charitiable organizations to re-assert their status via the Form 990. Tax-exempt organizations are likely to keep their status once the form is submitted, but if they do not submit the form, they will find their organizations retroactively taxed back to May 2010.
According to Mark Hyrwna at The NonProfit Times, “The Pension Protection Act passed in 2007 added two new requirements for Form 990s: one, small organizations that never had to file would have to file the most basic form; and two, if organizations failed to file a Form 990 for three consecutive years, their tax-exempt status automatically would be revoked and the only way to get the exemption back would be to file a new application for exemption. The rule does not apply to churches.” Many of those following this topic believe it is the ‘small organizations’ that have never had to file a form are in the greatest danger of not realizing the situation and thus losing their status.
Though few Americans have warm feelings toward the IRS, the service has worked hard to get the word out and to list specific information about organizations that might be on the brink of losing their tax exemptions. The IRS website has posted that list by state for everyone’s convenience. Moreover, the 15 October deadline is an extension from that 17 May deadline that will be the retroactive date for back taxes.
Perhaps we are seeing a kinder, gentler, IRS. Or perhaps this flexibility is part of the change promised by the Obama Administration. In any case, the word has been out and the deadline is fast approaching. Be sure to take advantage of the opportunity to ensure your organization stays in the black and in the right tax category. We have been warned.
