In 2006, Congress passed the Pension Protection Act. This law mandated that all tax-exempt organizations, except churches and church-related groups, file annual information returns with the IRS beginning in 2007. This was a new requirement for many small organizations. The consequences for failure to file are dire-any organization that does not file an information return for three consecutive years automatically loses its tax exemption.
Despite the Service's outreach efforts to date, many small organizations still appear to be unaware of the tax law change as they haven't filed. Small tax-exempt organizations do great work in their communities. The IRS believes it's important to give these organizations an opportunity to preserve their valuable tax exemption and is offering a one-time relief program to bring these small organizations back into compliance.
The smallest organizations, eligible to file a 990-N, can go to the IRS Web site and electronically file the ePostcard. It asks for only eight information items. Small tax-exempt organizations eligible to file Form 990-N (e-Postcard) or Form 990-EZ have until October 15, 2010 to file.
Larger organizations should file their delinquent returns for the 3 years (2007, 2008 and 2009) and pay the compliance fee by October 15, 2010.
Thank you, in advance, for sharing this important information with your widest audience possible. As you know, the public at large may have connections with exempt organizations through volunteer work contributions or social contacts, thus, could help to spread this vital message to others, such as, Board members, officers, staff and volunteers who may be responsible for their organization's application for tax exemption, and may not be familiar with the process.
For more information, visit the IRS Website at http://www.irs.gov
Note from Rep. Shimabukuro: Mahalo nui loa to Art Frank, Wai Paaoao, and Barbie-Lei Burgess for sharing this information. Please note that apparently all non-profits must file these forms, even if they had no income in the preceding year.