Disclaimer of Liability
The information in this e-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice,
accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used
as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or
taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular
situation.
The author of the tax articles in this e-newsletter did not intend nor write the advice to be used to avoid any penalty imposed by a
taxing authority, nor may any user/recipient of this document use this document's written tax advice for that purpose. This document's
tax advice was written specifically to support the promotion or marketing of the transaction/matter addressed by the written tax advice.
Therefore, any user/recipient of this document should seek an independent tax professional's advice regarding the user/recipient's
particular circumstances.
The information is provided "as is" with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and
without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for
a particular purpose.
The information in this e-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice,
accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used
as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or
taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular
situation.
The author of the tax articles in this e-newsletter did not intend nor write the advice to be used to avoid any penalty imposed by a
taxing authority, nor may any user/recipient of this document use this document's written tax advice for that purpose. This document's
tax advice was written specifically to support the promotion or marketing of the transaction/matter addressed by the written tax advice.
Therefore, any user/recipient of this document should seek an independent tax professional's advice regarding the user/recipient's
particular circumstances.
The information is provided "as is" with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and
without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for
a particular purpose.
| Serving the Central Pennsylvania area since 1981 |
| Robert A. Romako, CPA |
| Attention Nonprofits – Save Your Tax Exemption! |
The IRS has announced that under a one-time relief program small tax-exempt organizations that
failed to file tax returns for 2007, 2008 and 2009 can avoid losing their exempt status. But, your
organization must act before October 15, 2010.
For the smallest organizations – those with less than $25,000 in annual gross receipts -
relief is obtained by going to http://www.irs.gov/charities/article/0,,id=169250,00.html and
completing the 8 information items required on Form 990-N. Filing is done electronically, and
must be completed before October 15 for calendar-year organizations. This is all that must be
done to bring your organization back into compliance.
For organizations having gross receipts in their 2009 tax year of between $25,000 and
$500,000 and total assets of less than $1.25 million, the procedure is more involved. Any
non-filed years must be completed using IRS Form 990-EZ; the due date for calendar-year
organizations is October 15. In addition, a compliance fee must be paid: $100 if the organization’s
2009 gross receipts are under $100,000; $200 if gross receipts are between $100,001 and
$200,000; and $500 if gross receipts are between $200,001 and $500,000.
Larger organizations (those with gross receipts over $500,001 or with assets greater than
$1.25 million) are not eligible for the relief program, and must file all missing Form 990 returns
and pay late filing penalties. Private foundations (those filing Form 990-PF) are also ineligible.
Organizations that do not comply with the filing requirement will be subject to revocation of their
tax-exempt status. This will cause the organization to be subject to regular corporation income
taxes on its net income for any unfiled periods. In addition, the organization will have to re-apply
for tax-exempt status and pay user fees to the IRS for that filing.
The IRS has published a list of organizations that have not filed the required returns for the
past 3 years. That list can be viewed at http://www.irs.gov/charities/article/0,,id=225889,00.html.
However, the IRS cautions that the list may not be complete. If you are an officer or director
of a non-profit organization, you should verify that the organization is completely up-to-date on its
filings. If you need assistance in filing the missing returns, please call me to help.
failed to file tax returns for 2007, 2008 and 2009 can avoid losing their exempt status. But, your
organization must act before October 15, 2010.
For the smallest organizations – those with less than $25,000 in annual gross receipts -
relief is obtained by going to http://www.irs.gov/charities/article/0,,id=169250,00.html and
completing the 8 information items required on Form 990-N. Filing is done electronically, and
must be completed before October 15 for calendar-year organizations. This is all that must be
done to bring your organization back into compliance.
For organizations having gross receipts in their 2009 tax year of between $25,000 and
$500,000 and total assets of less than $1.25 million, the procedure is more involved. Any
non-filed years must be completed using IRS Form 990-EZ; the due date for calendar-year
organizations is October 15. In addition, a compliance fee must be paid: $100 if the organization’s
2009 gross receipts are under $100,000; $200 if gross receipts are between $100,001 and
$200,000; and $500 if gross receipts are between $200,001 and $500,000.
Larger organizations (those with gross receipts over $500,001 or with assets greater than
$1.25 million) are not eligible for the relief program, and must file all missing Form 990 returns
and pay late filing penalties. Private foundations (those filing Form 990-PF) are also ineligible.
Organizations that do not comply with the filing requirement will be subject to revocation of their
tax-exempt status. This will cause the organization to be subject to regular corporation income
taxes on its net income for any unfiled periods. In addition, the organization will have to re-apply
for tax-exempt status and pay user fees to the IRS for that filing.
The IRS has published a list of organizations that have not filed the required returns for the
past 3 years. That list can be viewed at http://www.irs.gov/charities/article/0,,id=225889,00.html.
However, the IRS cautions that the list may not be complete. If you are an officer or director
of a non-profit organization, you should verify that the organization is completely up-to-date on its
filings. If you need assistance in filing the missing returns, please call me to help.
AUGUST 2010 NEWSLETTER ARTICLE
| Robert A. Romako, CPA 220 Haldeman Avenue New Cumberland, PA 717.774.3047 |