Taxpayers Face Oct. 15 Deadlines: Due Dates for Extension Filers, Non-Profits Approach

In their newest press release, the IRS reminded taxpayers of the upcoming October 15^th deadline for extension filers and non-profits. Taxpayers and non-profits that filed for an extension will have until then to file their late return.

“The Oct. 15 deadline is particularly important this year because it’s the last chance for many small charities to comply with the law under the one-time relief program the IRS announced in July,” said IRS Commissioner Doug Shulman. “And as always, it’s an important deadline for taxpayers who took an extension to file their returns.”

Don’t Miss Your 1040 Deadline

The IRS expects to receive as many as 10 million tax returns from taxpayers who used Form 4868 to request a six-month extension to file their returns. Some taxpayers can wait until after Oct. 15 to file, including those serving in Iraq, Afghanistan or other combat zone localities and people affected by recent natural disasters.

The IRS encourages taxpayers to e-file. E-file with direct deposit results in a faster refund than by using a paper return. Electronic returns also have fewer errors than paper returns. Oct. 15 is the last day to take advantage of e-file and the Free File program.

Continue reading at IRS.gov…

IRS Offers One-Time Special Filing Relief Program for Small Charities

Thousands of small charities and non-profits lost their tax-exempt status for failing to file tax returns for 2007 – 2009. In their newest press release, the IRS announced they will are giving these charities a second chance to reclaim their status, as long as they file their missed returns by October 15^th of 2010.

The IRS today posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and Oct. 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years.

“We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption,” IRS Commissioner Doug Shulman said. “So if you do not have your filings up to date, now’s the time to take action and get back on track.”

Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard) , and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

Small organizations required to file Form 990-N simply need to go to the IRS website, supply the eight information items called for on the form, and electronically file it by Oct. 15. That will bring them back into compliance.

Under the VCP, tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by Oct. 15 and pay a compliance fee. Details about the VCP are on the IRS website, along with frequently asked questions.

More Non-Profits Win Exemption From Campaign-Finance Rules

From USAToday.com:

Top House Democrats agreed today to exclude more non-profit groups from new disclosure requirements to win broader congressional support for a campaign-finance bill, the Associated Press and other news organizations report.

The move comes after Democrats reached a deal to exempt the National Rifle Association and other groups that have at least 1 million members and receive no more than 15% of their money from corporations from the new rules.

Organizations on the left and right criticized the NRA carve-out, and Rep. Chris Van Hollen, D-Md., the bill's author, has widened the exemption to include groups with 500,000 members, the AP writes.

The legislation comes in response to a January Supreme Court ruling that opened the door to unlimited corporate and union spending to support and defeat candidates. Under the bill, corporations, unions and non-profits that broadcast political ads would have to disclose their top donors.

Statement of IRS Commissioner Doug Shulman on the Filing Deadline for Small Charities

According to the IRS’s newest press release, many small tax-exempt organizations have not filed the required information tax exempt return on time. As such, Commissioner Doug Shulman has put out the following statement regarding the issue.

The IRS has conducted an unprecedented outreach effort in the tax-exempt sector on the 2006 law’s new filing requirements, but many of these smaller organizations are just now learning of the May 17 deadline. I want to reassure these small organizations that the IRS will do what it can to help them avoid losing their tax-exempt status.

The IRS will be providing additional guidance in the near future on how it will help these organizations maintain their important tax-exempt status — even if they missed the May 17 deadline. The guidance will offer relief to these small organizations and provide them with the opportunity to keep their critical tax-exempt status intact.

So I urge these organizations to go ahead and file — even though the May 17 deadline has passed.

Filing a tax return for the small organizations is easier than you’d think. It just takes a few minutes to fill out the electronic notice Form 990-N (e-Postcard). This is available for small tax-exempt organizations with annual receipts of $25,000 or less.

Tax-Exempt Status Could Hinge On Filing Deadline

I posted a blog earlier this week explaining how 200,000 charities and non-profits are at risk of losing their non-profit status if they do not file a return by this upcoming Monday. The deadline is quickly approaching; are you ready? While you would think this would prompt any organization at risk to act quickly, as this story from NRP asserts, many simply do not know about the looming deadline.

The requirement goes back to a 2006 law that says nonprofits with revenues of $25,000 or less have to start filing annual tax forms — something they never had to do before. The law also says that if they fail to do so for three years in a row, their tax-exempt status will be immediately revoked.

Since nonprofits have to file no later than four months and 15 days after the end of their fiscal year, the three-year deadline for many groups is May 17 (May 15 falls on a Saturday).

Tim Delaney, head of the National Council of Nonprofits, is worried that a lot of tax-exempt groups will miss the deadline. He notes that some of these organizations are run informally by volunteers.

"The concern that a lot of people have is that many smaller nonprofits — a PTA, a local Little League — will even be aware of this change in the law," he says.

Continue reading at NRP.org…