Reprieve from IRS Follows Rude Awakening
The rumored demise of thousands of nonprofits has turned out to be premature, as IRS Commissioner Doug Shulman has announced that those who missed the May 17 deadline to file with the agency will not forfeit their tax-exempt status automatically. Shulman explained:
“The IRS has conducted an unprecedented outreach effort in the tax-exempt sector on the 2006 law’s new filing requirements, but many of these smaller organizations are just now learning of the May 17 deadline. I want to reassure these small organizations that the IRS will do what it can to help them avoid losing their tax-exempt status.”
Numerous news organizations have covered the deadline, illustrating the problem by interviewing heads of small nonprofits who had been unaware of the new provision, which actually went into effect a couple of years ago, requiring them to file now. Rather than toss out the many organizations who’d missed it, Shulman said the IRS will work with groups to help them meet the requirements, but he asked them to file without delay:
“Filing a tax return for the small organizations is easier than you’d think. It just takes a few minutes to fill out the electronic notice Form 990-N (e-Postcard). This is available for small tax-exempt organizations with annual receipts of $25,000 or less.”
Organizations wishing to access the form or get further information should click here.