Tax-Exempt Tips For Oct. 15 Due Date

The IRS has issued notice, don’t forget about the Oct. 15 deadline for non-profit organizations that are at risk of losing their non-profit filing status. The one-time relief program for tax-exmempt entities is going to end on Oct. 15.

The 2006 Pension Protection Act mandated that any tax-exempt organization that does not file a return or electronic notice for 3 consecutive years will automatically lose their federal tax-exempt filing status. If a tax-exempt organization failed to file in 2007, 2008 and 2009 they may still preserve their status by filing by Oct 15th.

The two types of relief that may apply are; filing an extension for the smallest organizations required to file Form 990-N and an Electronic Notice or a voluntary compliance program for small organizations eligible to file Form 990-EZ.

For the tax-exempt entities with annual receipts under $25,000, an electronic notice Form 990-N will satisfy. This is known as the e-Postcard.

This relief did not apply to larger organizations required to file the Form 990 or to private foundations (990-PF).

Remember, if you lose your tax-exempt status, you can re-apply, but any income between revocation and the renewal date is taxable.