Revocation of tax-exempt status and reinstatement... a revised Form 990 for 2011... a new Search Charities tool! There is a lot happening in the Exempt Organizations Division of the Internal Revenue Service, and Lois G. Lerner, director of the division, explained some of it during her January 26 webinar, A Conversation with Lois Lerner. The program was hosted by the department of Public Policy and Government Affairs of Independent Sector and featured a brief presentation and an extended Q&A.
Here is what we learned:
2011 Form 990
The 2011 Form 990 and instructions have been released online. They contain changes to several schedules - find out what the re-designs are here. (Use "Revision Date" to toggle to 2011 changes.)
Ms. Lerner urged listeners to provide comments on the new 990 and let us know that the Form 990 will continue to evolve. Send an e-mail to form990revisions@irs.gov or comment online.
Where Is Search Charities?
If you've been wondering what happened to Search Charities on the IRS web site, Ms. Lerner explained. That quick look-up tool has been replaced with Exempt Organizations Select Check, a more flexible and efficient search engine released a few days ago. Select Check allows users to choose among three databases of organizations -- that 1) "are eligible to receive tax-deductible contributions", or 2) "were automatically revoked", or 3) "have filed Form 990-N (e-Postcard)".
The three databases allow for searching by EIN (an added search field), name, city, state, ZIP code, country, and revocation posting date (in the case of organizations on the automatic revocations list). Use the Exempt Organizations Select Check – Search Tips page for good advice on finding the data you need.
Backlog on Determination Applications
For those that use the IRS web site to gage when their application for tax-exempt status will be reviewed, there's good news, at least for some.
If you look on the site today, you'll see, "Currently, we are assigning applications received in June 2011." June?! Ms. Lerner explained that to be absolutely accurate, the IRS chooses to post the longest "wait time" for the assignment of applications instead of the shortest. The longest corresponds to problematic applications; the shortest to complete and accurate ones. To find out for sure where your application is in the review process, Ms. Lerner suggested that you contact the IRS directly.
Revocations
The push to clean up the IRS master file of tax exempt organizations appears to have worked, according to Ms. Lerner. As you probably know, in mid 2011, after alerting nonprofits since May 2010 that they would lose their tax-exempt status if they did not file their required annual information returns, the IRS published an initial automatic revocation of exemption list. We learned today that of the close to 400,000 organizations that lost their tax-exempt status, only about 9,500 of them applied for reinstatement.
To keep nonprofits in the loop about tax policy and other important information, the Exempt Organizations Division puts out a newsletter, EO Update, which also gives updates on new forms, guidance, and training opportunities. Subscribe here.
Inés Sucre
Foundation Center-New York
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