IRS relief for small nonprofits (7-26-2010)

IRS Commissioner Doug Shulman announced that the IRS is providing relief for small nonprofit organizations that are at risk of losing their tax-exempt status because they have missed, or are about to miss, the deadline for filing Form 990-N or Form 990-EZ.

The program offers two types of relief:

• They are extending the filing deadline to October 15 for organizations with gross receipts of $25,000 or less. These are the groups that have to file the Form 990-N, the e-postcard.
• Larger organizations, which are eligible to file the Form 990-EZ, may file their three delinquent returns and pay a small fee ($100 - $500). As long as they file by October 15, they won’t lose their tax exemption.

No relief is available to larger organizations that have to file the Form 990, or to private foundations that file Form 990-PF.

For more information on this program and a list of organizations at risk of losing their tax-exempt status, go to http://www.irs.gov/charities/article/0,,id=225889,00.html.