EO Update May 7, 2010
Issue Number: 2010-11
Inside This Issue:
- Many Tax-Exempt Organizations Must File 990 Series Returns by May 17 to Preserve Tax-Exempt Status
- IRS Releases Interim Report on Colleges and Universities
- Cyber-Assistant Release to be Delayed
- Commissioner Shulman Addresses the Council on Foundations
- Tax Relief for Declared Disaster Areas
- Register Now for Workshops for Small and Mid-Sized 501(c)(3) Organzations.
1. Many Tax Exempt Organizations Must File 990 Series Returns by May 17 to Preserve Tax-Exempt Status
A crucial filing deadline of May 17 is looming for many tax-exempt organizations that are required by law to file their Form 990 series return or risk having their federal tax-exempt status revoked. Any organization that fails to file for three consecutive years automatically loses its federal tax-exempt status.
Organizations should note that, absent a request for an exension, there is no grace period from filing by the original due date. Organizations may request an extension of their filing date by filing Form 8868 by the original due date.
For more information on what form or notice an organization must file to avoid automatic revocation, go to IRS.gov.
2. IRS Releases Interim Report on Colleges and Universities
The Internal Revenue Service today released an interim report summarizing responses to compliance questionnaires sent to 400 public and private colleges and universities in October 2008. Colleges and universities make up one of the largest nonprofit segments in terms of revenue and assets.
The interim report contains preliminary information on the respondents’ organizational structures, demographics, exempt and unrelated business activities, endowments, executive compensation and governance practices.
3. Cyber-Assistant Release to be Delayed
The IRS has been developing Cyber-Assistant, a Web-based software program, designed to help 501(c)(3) applicants file a complete and accurate application for exemption (Form 1023) and improve the quality and consistency of exemption applications. Unfortunately, software testing has revealed some problems requiring correction prior to public launch, and the IRS must delay the release of Cyber-Assistant beyond this calendar year. Accordingly, the IRS will continue to accept and process all applications using our existing processes and the current user fees will remain in effect for this calendar year.
4. Commissioner Shulman Addresses Council on Foundations
Read the remarks of IRS Commissioner Shulman before the Council on Foundations Annual Conference on April 24, 2010.
5. Tax Relief for Declared Disaster Areas
Special tax rules apply when an affected area has been declared a federally or Presidentially declared disaster area. These provisions provide relief from certain time-sensitive requirements, including certain notice, filing, and election requirements that apply to exempt organizations.
Find IRS News Releases about the most recent disaster declarations and learn which exempt organization requirements may be postponed in a declared disaster on IRS.gov.
6. Register Now for Workshops for Small and Mid-Sized 501(c)(3) Organizations
It's not too late! Visit our Calendar of Events now to learn how to register for our popular Workshop for Small and Mid-Size 501(c)(3) Organizations in Seattle, Washington (May 11-13) and Washington, DC (May 25-27). Each one day workshop, presented by experienced Exempt Organizations specialists, will explain what 501(c)(3) organizations must do to keep their tax-exempt status and comply with tax obligations. This introductory workshop is designed for administrators or volunteers who are responsible for an organization's tax compliance.