IRS Identifies Organizations that Have Lost Tax-Exempt Status; Announces Special Steps to Help Revoked Organizations

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WASHINGTON –– 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 organizations are defunct, but it also announced special steps to help any existing organizations to apply for reinstatement of their tax-exempt status.

Congress passed the Pension Protection Act (PPA) in 2006, requiring most tax-exempt organizations to file an annual information return or notice with the IRS. For small organizations, the law imposed a filing requirement for the first time in 2007.  In addition, the law automatically revokes the tax-exempt status of any organization that does not file required returns or notices for three consecutive years.

For several years, the IRS has made an extensive effort to inform organizations of the changes in the law through multiple outreach and education avenues, including mailing more than 1 million notices to organizations that had not filed. In addition, last year the IRS published a list of at-risk groups and gave smaller organizations an additional five months to file required notices and come into compliance. About 50,000 organizations filed during this extension period. Overall, the IRS believes the vast majority of small tax-exempt organizations are now in compliance with the 2006 law. Continue reading →

Extension of time for reporting Tax on Form 990-T

Extension of time for reporting Tax on Form 990-T

Corporations may request an automatic 6-month extension of time to file Form 990-T by using Form 8868, Application for Extension of Time To File an Exempt Organization Return.

Trusts may request an automatic 3-month extension of time to file by using Form 8868. Also, if more than the initial automatic 3 months is needed, trusts may file a second Form 8868 to request that an additional, but not automatic, 3-month extension be granted by the IRS.

What id Form 990-T?

Form 990-T is to report Income Tax on a non-profit corporation, trust etc.

Purpose of Form

Use Form 990-T, Exempt Organization Business Income Tax Return, to:

  • Report unrelated business income;
  • Figure and report unrelated business income tax liability;
  • Report proxy tax liability;
  • Claim a refund of income tax paid by a regulated investment company (RIC) or a real estate investment trust (REIT) on undistributed long-term capital gain; and
  • Request a credit for certain federal excise taxes paid or for small employer health insurance premiums paid.

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Report Extension Tax form 8868 to get more time to file Form 990, Return of Organization Exempt From Income Tax.

Form 990, Return of Organization Exempt From Income Tax

Annual Electronic Filing Requirement for Small Tax-Exempt Organizations:

Many small tax-exempt organizations with annual gross receipts less than or equal to $50,000 now must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, if they choose not to file Form 990 or 990-EZ. See the IRS website at www.irs.gov/charities and click on the Form 990-N (e-Postcard) tab for more information.

Paid preparers can no longer enter their social security numbers on page 1 in the signature block.

Purpose of 990 Forms

Forms 990 and 990-EZ are used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033.

An organization’s completed Form 990 or 990-EZ, and a section 501(c)(3) organization’s 990-T, Exempt Organization Business Income Tax Return, generally are available for public inspection as required by section 6104. Schedule B (Form 990, 990-EZ, or 990-PF), Schedule of Contributors, is available for public inspection for section 527 organizations filing Form 990 or 990-EZ. For other organizations that file Form 990 or Form 990-EZ, parts of Schedule B (Form 990, 990-EZ, or 990-PF), can be open to public inspection. See Appendix D and the instructions for Schedule B (Form 990, 990-EZ, or 990-PF) for more details.

Some members of the public rely on Form 990 or Form 990-EZ as their primary or sole source of information about a particular organization. How the public perceives an organization in such cases can be determined by information presented on its return. Therefore, the return must be complete, accurate, and fully describe the organization’s programs and accomplishments.

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File an extension before due date April 18!!

File it before April 18 @ www.tax4868.com

Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.www.Extensiontax.com

Use Form 4868 to request an automatic extension of time to file a U.S. individual income tax return. The extension will be granted if you properly estimate your tax liability using the information available to you. Enter your total tax liability on Form 4868, and file Form 4868 by the regular due date of your return (April 18th).

Although you are not required to make the full payment of the tax you estimate as due, Form 4868 does not extend the time to pay taxes. If you do not pay the amount due by the regular due date, you will owe interest. You should pay as much as you can to limit the amount of interest you will owe. You may also be charged penalties.

You do not have to explain why you are asking for the extension. IRS will contact you only if your request is denied. Do not file Form 4868 if you want the IRS to figure your tax or you are under a court order to file your return by the regular due.

Use Form 4868 to apply for 6 more months (4 months if U.S. citizen or resident is out of country) to file Form 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ.

Calendar year taxpayers should file Form 4868 by April 15, 2010. Fiscal year taxpayers, file Form 4868 by the regular due date of the return.

If a US citizen or resident is out of the country on the regular due date of return, then he/she is allowed 2 extra months to file the return and pay any amount due without requesting an extension. For a calendar year return, this is June 15, 2010. File this form and be sure to check the box if you need an additional 4 months to file your return.

E-file your extension:

In order to get an extension, you need to file Form 4868 with the IRS through www.tax4868.com /www.ExtensionTax.com. Paid prepares can also electronically file Form 4868 through our service. All it takes is just minutes to complete and get easy 6-months extension.

Get 6-months Tax Extension, relax yourself, prepare and file your returns on or before Oct 15th, 2011. No penalty or interest to e-file Tax Extension. Call our Help Desk at 1-866-245-3918 or simple write to us at support@extensiontax.com

Can’t File on Time? Get an Extension until Oct. 17

Are you unable to complete and file your federal individual tax return by the April 18 deadline? If so, you can request an extension of time to file, which will automatically give you until Oct. 17, 2011, to submit your tax return to the Internal Revenue Service. Now Extension request can be made online through www.tax4868.com / www.ExtensionTax.com. Efile, It’s as Easy as 1-2-3.

An extension gives you an additional six months to file your tax return. But keep in mind that an extension of time to file is not an extension of time to pay. All outstanding balances are due on April 18, 2011.

The IRS expects to receive approximately 10 million extension requests in 2011, which is about the same as last year.

Numerous Ways to Get an Extension

In order to get an extension, you need to file Form 4868 with the IRS through www.tax4868.com /www.ExtensionTax.com. Paid prepares can also electronically file Form 4868 through our service. All it takes is just minutes to complete and get easy 6-months extension.

When you request an extension, you need to estimate your tax liability and pay any balance due by the April 18 deadline. If you are unable to pay the total balance due, you should pay as much as possible and apply for an installment agreement.

Get 6-months Tax Extension, relax yourself, prepare and file your returns on or before Oct 15th, 2011. No penalty or interest to efile Tax Extension. Call our Help Desk at 1-866-245-3918 or simple write to us at support@extensiontax.com