Tax-exempt organizations that do not satisfy annual filing requirements for three (3) consecutive years automatically lose their tax-exempt status. The Internal Revenue Service (the “IRS”) has published a list at http://www.irs.gov/pub/irs-tege/pa.pdf, which identifies those Pennsylvania organizations for which the IRS does not have a record of a required annual filing for 2007 and 2008, and whose 2009 return, due on or after May 17 and before October 15, 2010, has not yet been received. The IRS is offering a one-time relief program that will allow small tax-exempt organizations to come back into compliance and retain their tax-exempt status even though they failed to file for three (3) consecutive years.
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 October 15, 2010, while tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by October 15, 2010 and pay a compliance fee. Organizations required to file Form 990 or Form 990-PF are not eligible and are automatically revoked if they fail to file for three (3) consecutive years. Details about the one-time relief program are on the IRS website at http://www.irs.gov/charities/article/0,,id=225702,00.html.
For information on how to participate in the IRS’ one-time relief program or for questions on how to form or maintain a tax-exempt organization, please contact Theodore F. Claypoole at 610-692-1371 or tclaypoole@utbf.com.
