EO Update October 7, 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.|
Inside This Issue
- Reminder: Tax-Exempt Organizations Can Preserve Exempt Status by Filing Returns by October 15 Due Date
- New Online Registration System for Paid Return Preparers Now Available
- Free Demonstration of PTIN Registration System
- Certain IRS Systems Unavailable During Columbus Day Weekend
- Register Now for Workshops for Small and Mid-Size 501(c)(3) Organizations
- Advance Draft of 2010 Core Form 990
1. Reminder: Tax-Exempt Organizations Can Preserve Exempt Status by Filing Returns by October 15 Due Date
A crucial filing deadline of October 15 is looming for many tax-exempt organizations. Most tax-exempt organizations, other than churches, must file an annual return or electronic notice (Form 990-N) with the IRS. If an organization does not file as required for three consecutive years, the law provides that it automatically loses its tax-exempt status.
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 October 15, 2010 under a one-time relief program. 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. Find complete information about eligibility and program requirements on IRS.gov.
The IRS has issued a Special Edition Tax Tip and a News Release to help nonprofit organizations take advantage of the one-time relief program and maintain their tax-exempt status. In addition, you can find information you can use to help organizations that may be at risk of losing their tax-exempt status at IRS.gov.
2. New Online Registration System for Paid Return Preparers Now Available
As part of an initiative to ensure that tax return preparers are competent and qualified, the Internal Revenue Service announced that it has issued final regulations requiring paid tax return preparers to register with the IRS to obtain a Preparer Tax Identification Number (PTIN).
All paid tax return preparers who prepare all or substantially all of a tax return are required to use the new registration system to obtain a PTIN.
Individuals who currently possess a PTIN will need to reapply under the new system but generally will be reassigned the same number.
3. Free Demonstration of PTIN Registration System
The IRS will offer a free demonstration of the PTIN Registration System for tax professionals on October 19, 2010. Registration is required
4. Certain IRS Systems Unavailable During Columbus Day Weekend
Several IRS systems, including the modernized e-file system used to file Forms 990 series returns, Forms 1120-POL, and filing extensions, will be unavailable over the Columbus Day weekend due to a scheduled power outage at the IRS Martinsburg Enterprise Computing Center. Systems will be unavailable from Sunday, October 10, 2010 at 9 P.M. EST until Tuesday, October 12, 2010, at 5 a.m. EST.
Although the e-Postcard filing system will be available, e-mails confirming Form 990-N filings may be delayed because of the outage. The political organization filing and disclosure website, and charity search function of IRS.gov are not expected to be affected.
The IRS Online PTIN Sign-Up System will be unavailable beginning approximately 8:00 am EST Saturday, October 9, 2010 until approximately 8:00 am Monday, October 11, 2010 due to system maintenance.
We apologize for any inconvenience.
5. Register Now for Workshops for Small and Mid-Size 501(c)(3) Organizations
Register now to attend a Fall workshop for small and mid-size 501(c)(3) organizations:
- October 12: South Royalton, VT hosted by Vermont Law School
- October 19-20: Raleigh, NC, hosted by the Institute for Nonprofits at NC State University (October 20 sold out)
- December 7-9: Phoenix, AZ , in collaboration with Lodestar Center for Philanthropy and Nonprofit Innovation, Arizona State University
Click on the city of your choice for registration information.
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 popular introductory workshop is designed especially for administrators or volunteers who are responsible for an organization's tax compliance as well as those interested in careers in the nonprofit sector.
Go to our Calendar of Events for more information about upcoming workshops.
6. Advance Draft of 2010 Core Form 990
A draft of the core Form 990 for 2010 is available on IRS.gov. Note that this is an advance proof copy of the form and is subject to change and OMB approval before release.