The Internal Revenue Service today announced that approximately 275,000
\norganizations under the law have automatically lost their tax-exempt status
\nbecause they did not file legally required annual reports for three consecutive
\nyears. The IRS believes the vast majority of these organizations are defunct,
\nbut it also announced special steps to help any existing organizations to apply
\nfor reinstatement of their tax-exempt status.<\/p>\n
Congress passed the Pension Protection Act (PPA) in 2006, requiring most
\ntax-exempt organizations to file an annual information return or notice with
\nthe IRS. For small organizations, the law imposed a filing requirement for the
\nfirst time in 2007.\u00a0 In addition, the law automatically revokes the
\ntax-exempt status of any organization that does not file required returns or
\nnotices for three consecutive years.<\/p>\n
For several years, the IRS has made an extensive effort to inform
\norganizations of the changes in the law through multiple outreach and education
\navenues, including mailing more than 1 million notices to organizations that
\nhad not filed. In addition, last year the IRS published a list of at-risk
\ngroups and gave smaller organizations an additional five months to file
\nrequired notices and come into compliance. About 50,000 organizations filed
\nduring this extension period. Overall, the IRS believes the vast majority of small
\ntax-exempt organizations are now in compliance with the 2006 law.<\/p>\n
“During the past several years, the IRS has gone the extra mile to help make
\ntax-exempt groups aware of their legal filing requirement and allow them
\nadditional time to file,” IRS Commissioner Doug Shulman said. “Still, we
\nrealize there may be some legitimate organizations, especially very small ones,
\nthat were unaware of their new filing requirement. We are taking additional
\nsteps for these groups to maintain their tax-exempt status without jeopardizing
\ntheir operations or harming their donors.”<\/p>\n
As part of this, the IRS issued guidance today on how organizations can If an organization appears on the list of organizations whose tax-exempt status The list of organizations whose tax-exempt status has been revoked for The vast majority of tax-exempt groups file their required returns and are This listing should have little, if any, impact on donors who previously Publication on the list of organizations whose tax-exempt status has been Existing organizations that seek to have their tax-exempt status reinstated The Internal Revenue Service today announced that approximately 275,000 organizations under the law have automatically lost their tax-exempt status because they did not file legally required annual reports for three consecutive years. The IRS believes the vast majority of these … Continue reading
\napply for reinstatement of their tax-exempt status, including retroactive
\nreinstatement. In addition, the IRS announced transition relief for certain
\nsmall tax-exempt organizations \u2013 those with annual gross receipts of $50,000 or
\nless for 2010 \u2013 that were made subject to the new “postcard” filing
\nunder the PPA. The relief allows eligible small organizations to regain their
\ntax-exempt status retroactive to the date of revocation and pay a reduced
\napplication fee of $100 rather than the typical $400 or $850 fee. Full details
\nare available in Notice
\n2011-43<\/a>, Notice
\n2011-44<\/a> and Revenue
\nProcedure 2011-36<\/a>, issued today.<\/p>\n
\nhas been automatically revoked it is because IRS records indicate the
\norganization had a filing requirement and did not file the required returns or
\nnotices for 2007, 2008 and 2009.<\/p>\n
\nfailing to meet their filing requirement, which will be available on the IRS
\nwebsite at www.IRS.gov<\/a>, includes each
\norganization’s name, Employer Identification Number (EIN) and last known
\naddress. It is searchable by state. It also includes the effective date of the
\nautomatic revocation and the date it was posted to the list. The IRS will
\nupdate the list monthly to include additional organizations that lose their
\ntax-exempt status.<\/p>\n
\nunaffected by the revocation listing. In addition, the IRS believes the vast
\nmajority of the newly revoked groups are no longer in existence and need to be
\nremoved from the tax-exempt listing as the 2006 law requires.<\/p>\n
\nmade deductible contributions to auto-revoked organizations because donations
\nmade prior to the publication of an organization’s name on the list remain
\ntax-deductible. Going forward, however, organizations that are on the
\nauto-revocation list that do not receive reinstatement are no longer eligible
\nto receive tax-deductible contributions, and any income they receive may be
\ntaxable.<\/p>\n
\nrevoked serves as notice to donors and others that they may no longer rely on a
\nprior listing in IRS Publication 78, Cumulative List of Organizations, as an
\nindication of an organization’s tax-exempt status or its eligibility to receive
\ntax-deductible contributions. An updated version of Publication 78 with current
\nlistings will be published on the IRS website later this week. Nor can donors
\nrely on an IRS determination letter issued to the organization prior to the
\ndate of automatic revocation.<\/p>\n
\nmust complete an application and pay a user fee regardless of whether they were
\noriginally required to file such an application. More information on the
\nreinstatement process, including retroactive reinstatement, can be found on
\nIRS.gov.<\/p>\n","protected":false},"excerpt":{"rendered":"