Voluntary 990 Compliance

In its 2007 report, the Advisory Committee on Tax Exempt and Governmental Entities (ACT) identified the PPA threat of automatic revocation for failure to file the 990 as a powerful incentive to encourage non-filing tax-exempt organizations to rectify their reporting failures. The ACT recommended that the IRS implement a voluntary compliance program to help bring non-filers into compliance before the automatic revocation process begins, and in FY 2009, the IRS expects to implement an Exempt Organizations Voluntary Compliance Program (EOVCP) to address the concern.

ALSO: In September 2008, the IRS and the Treasury Department issued new regulations that streamlined the approval process for organizations seeking tax-exempt status as publicly supported charities. The new regulations eliminated the so-called “advance rulings” that granted public charity status for an initial five-year period but required exempt organizations to demonstrate, after that period, that they received enough public support to retain their public charity status.

Important information from the IRS

Newsletter from the IRS has several important notices for Nonprofits:

1. Charitable Hospitals: Modern Trends, Obligations and Challenges
2. Reqister Now for Spring Workshops for Small and Mid-Sized Exempt Organizations
3. Revised Procedures for Issuance of Ruling and Information Letters
4. New User Fees for Exempt Organization Matters
5. New Mailing Address for Applications for Exemption

Rather than summarize them here, I'll just direct you to the IRS's newsletter which is a good source of current information for Exempt Organizations.