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 status by filing returns by Oct. 15, 2010, under a one-time relief program.

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 should visit the IRS website, supply the eight information items called for on the form, and electronically file it by Oct. 15. 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. The relief announced is not available to larger organizations required to file the Form 990 or to private foundations that file the Form 990-PF.

Organizations that have not filed the required information returns by October 15, 2010 will have their tax-exempt status revoked, and the IRS will publish a list of these revoked organizations in early 2011. Donors who contribute to at-risk organizations are protected until the final revocation list is published. Additional details on this Relief Program can be located at: http://www.irs.gov/newsroom/article/0,,id=225959,00.html?portlet=7.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.

For further information, please contact Eva Mruk, Director of Tax Compliance, at 212-867-4000 or emruk@loebandtroper.com.

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About Loeb & Troper LLP

Loeb & Troper LLP is a leading regional professional services firm with a targeted focus and specialized expertise.  Established in 1919, the firm specializes in meeting the unique needs of health care, not-for-profit and special needs organizations by providing comprehensive audit, tax and consulting services.  The firm’s industry specialization has made it a highly-valued advisor and resource to some of the leading organizations in its fields of practice.   The firm has remained true to its core promises of industry-specific expertise, industry-specific leadership, active partner involvement, superior client service and a culture of integrity for ninety years.