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Changes to IRS Requirements for Small Nonprofits

August 25, 2010

A few years ago the IRS decided to require an annual filing for all tax exempt organizations (non-profits).  Before that time, small non-profits (those whose gross receipts are normally less than $25,000) were not required to file with the IRS.  Now these smaller organizations are required to file a return, Form 990-N, also known as the e-postcard.  It is called an e-postcard because it is very brief and can only be filed on-line.  Larger non-profits were (and still are) required to file either a 990 or 990-EZ.

The reason this is important is because exempt organizations who do not file a return for three consecutive years will automatically lose their tax exempt status.  For the first time, this is also being applied to small exempt organizations.  You can imagine the confusion this is causing for some small organizations.  Some of the organizations at risk are agricultural organizations.

Perhaps due to this confusion, the IRS announced a program for “One-Time Filing Relief for Small Organizations.”  See announcement below.  Small organizations who failed to file returns for ‘07,’08, and ‘09 can preserve their exempt status by filing their returns by October 15, 2010.

The IRS also provided a link listing the organizations that will lose their tax exempt status if no action is taken.  I quickly reviewed the organizations listed in Oregon.  You too can obtain the list by following the “announced” link in the announcement below (after the list of organizations- it is 134 pages long).  The agricultural organizations that I identified are listed below.

If you know anyone involved in these organizations, please let them know they need to file with the IRS or their organization will lose its exempt status.  For small organizations, the 990-N really is quite simple and painless.  It can be found at the following link:  http://www.irs.gov/charities/article/0,,id=169250,00.html

Benton County Wineries Association

Central Oregon Peppermint Growers Association

Clatsop County Livestock Association

Dairy Herd Improvement Association- Central Oregon

Dairy Herd Improvement Association- Malheur County

Eastern Oregon Dairy Herd Improvement Association

FFA- Glide, Lost River, Woodburn, Sam Barlow, Condon, Prairie City, Owen Sabin Skill Center

Jackson County Stockmen’s Association

Mid Valley Horticultural Association, Inc.

North Pacific Nut Growers Cooperative

Oregon Blueberry Growers Association

Oregon Holly Growers Association

Oregon Poultry Council

Oregon/ Washington Dairy Processors Association

Pacific NW Grain Export Association

Union County Cattlemen’s Association

Oregon Small Woodlands Association- Clatsop County, Douglas County, Jackson, Marion/Polk, Mid Columbia, Tillamook, Clackamas County

Washington County Livestock Association

Western Oregon Livestock Association

Western Oregon Onion Growers Association

 

1.  IRS Announces One-Time Filing Relief for Small Organizations that Failed to File for Three Consecutive Years


The Internal Revenue Service today announced  that small nonprofit  organizations at risk of losing their  tax-exempt status because they failed to file required returns for 2007, 2008, and 2009  can preserve their exempt status by filing returns by October 15, 2010.

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.

Find more information about the filing relief program on IRS.gov

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