EO Update August 27, 2010
|The filing relief program discussed on this page has expired. See Automatic Revocation for information about what happens if an exempt organization does not file annually for three consecutive years.|
Issue Number: 2010-20
Inside This Issue
- Do You Know a Small Organization at Risk of Losing Its Exempt Status?
- New FAQs for "At-Risk" Organizations
- Revised Publication on Tax-Exempt Organizations and Gaming Now Available
- IRS Announces New Return Preparer Application and User Fees
- StayExempt Mini-Courses
- What You Need to Know About IRS Tax-Exempt Organization Workshops
- Ten Tips for Taxpayers Making Charitable Contributions
- Employer v. Independent Contractor
1. Do You Know a Small Organization at Risk of Losing Its Exempt Status
We need your help to prevent tax-exempt organizations in your community from losing their tax exemption. Tax-exempt organizations, except churches and church-related groups, that fail to file for three consecutive years automatically lose their tax-exempt status. The IRS is providing one-time relief to allow small tax-exempt organizations to come back into compliance by October 15, 2010, and retain their tax-exempt status even though they failed to file for three consecutive years. The IRS has published a list of over 300,000 organizations at risk of losing their exemption because the IRS has no record of their filing for 2007, 2008 or 2009.
If you are a volunteer, member or just a friend of an organization at risk of losing its exemption, please alert the organization and encourage it to go to IRS.gov and find out how the organization can come back into compliance today.
2. New FAQs for "At-Risk" Organizations
As described above, tax-exempt organizations that do not satisfy annual filing requirements for three consecutive years automatically lose their tax-exempt status. The IRS has issued FAQs about automatic revocation for failure to file a return or notice and FAQs about the one-time filing relief program for organizations at risk of losing their tax-exempt status. New questions and answers have been added to address questions involving terminated organizations, filing requirements of organizations included in group rulings, and organizations that believe they are exempt from filing as churches or church-related organizations.
3. Revised Publication on Tax Exempt Organizations and Gaming Now Available
The IRS has released Publication 3079 (rev. June 2010), Tax-Exempt Organizations and Gaming. The publication explains the potential effect that gaming may have on an organization's federal tax-exempt status and the special reporting responsibilities of organizations that engage in gaming activities.
4. IRS Announces New Return Preparer Application System and User Fees
The IRS announced that a new online application system for compensated tax return preparers is expected to go live in mid-September. The IRS has proposed to require all individuals who receive compensation for preparing all or substantially all of a federal tax return or claim for refund after Dec. 31, 2010, to have a Preparer Tax Identification Number (PTIN).
5. StayExempt Mini-Courses
Coach says, "Have an extra 15 minutes? Visit StayExempt.irs.gov to find mini-courses on subjects of interest to exempt organizations such as preparing to file Form 990, disaster relief, and charitable contributions."
6. What You Need to Know About IRS Tax-Exempt Organization Workshops
Read this IRS Special Edition Tax Tip to learn the five things you need to know about the 2010 IRS Workshops for Small and Mid-Size 501(c)(3) organizations. Go to the Calendar of Events for further information about upcoming workshops and how to register.
7. Ten Tips for Taxpayers Making Charitable Contributions
Taxpayers who donate to charities may be entitled to take a charitable deduction on their individual income tax return.Here are the top ten things the IRS wants every taxpayer to know before deducting charitable donations.
8. Employer v. Independent Contractor
Review the seven things every employer, including exempt employers, should know about the proper classification of workers as independent contractors or employees.