TAX NEWS - January 2010

IRS: File Form 990 Series Returns Timely to Preserve Tax-Exempt Status

Most tax-exempt organizations, other than churches, must file an annual Form 990 series return with the IRS. It is important to file a timely return because an organization that does not file a required Form 990, 990-EZ, 990-PF or 990-N ("e-Postcard") for three consecutive years will automatically lose its Federal tax-exempt status. Non-filers will be subject to automatic revocation for the first time beginning in 2010.  See IR-2010-10 for further information.

Organizations, practitioners and others should feel free to use our useful fact sheet and drop-in media in newsletters or on their Web sites to communicate the importance of filing timely returns to avoid the automatic revocation of tax-exempt status.