Last Chance for Small Nonprofits to Avoid Losing Tax-Exempt Status

The IRS has announced that it is offering a one-time extension, until October 15, 2010, for "small" nonprofit organizations that have not filed an annual tax return since 2007.  Otherwise, the IRS has begun to automatically revoke the tax-exempt status of any nonprofit (other than a church or church-related organization) that fails to file an annual return for three consecutive years.

The one-time extension is only available to organizations permitted to file Form 990-N or Form 990-EZ, not other versions of Form 990.  Small nonprofits need only to file the return electronically and pay a compliance fee by October 15 to qualify for the relief.  The fee is based on the gross receipts of the organization for 2009 and ranges from $100 to $500.

Frequently Asked Questions
http://www.irs.gov/charities/article/0,,id=225954,00.html?portlet=7

List of At-Risk Nonprofit Organizations
http://www.irs.gov/charities/article/0,,id=225889,00.html?portlet=7

Please contact a member of our Taxation & Estate Preservation Practice Group if you need help filing an extension or have questions about this IRS policy.

For more information, visit us on the web at cbslawfirm.com.
Or contact our office:

1000 Tallan Building
Two Union Square
Chattanooga, TN 37402
P (423) 756-3000
F (423) 265-9574

Copyright 2012. Chambliss, Bahner, and Stophel, P.C. All Rights Reserved.

Meritas

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