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
