Lois Lerner, IRS Tax-Exempt and Government Entities Division Director, indicated that the October deadline is quickly approaching for small nonprofits who have not yet filed their return.
In the Pension Protection Act of 2006, a requirement was created for small nonprofits to file an e-postcard return. The requirement was applicable starting in year 2007. If small nonprofits did not file the return on the IRS website by April 15, 2010, they will automatically lose exempt status.
This deadline was extended by the IRS until October 15, 2010. Lerner indicated that about 60,000 small nonprofits have now viewed www.IRS.gov and completed the online Form 990-N (electronic postcard).
However, the IRS website has a list of organizations who have not filed. The www.IRS.gov list includes the last recorded address and contact person for those who have not yet filed. The IRS encourages all smaller organizations to retain their exempt status by filing prior to the October 15th deadline. If small organizations file by that date, there will not be a penalty.
Midsize organizations may qualify to file IRS Form 990 EZ. The IRS website also explains how these organizations may file by October 15th. Because they are past the normal deadline, there is a compliance fee for that filing. The explanation of the compliance fee is also available on www.IRS.gov.