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.
