Nonprofit organizations including Friends of Libraries groups and Foundations are at risk of losing their tax-exempt status if they have failed to file required federal tax returns for 2007, 2008 and 2009. Small nonprofit organizations that file a 990-N or 990-EZ tax return can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program just announced by the Internal Revenue Service. Complete information is at the IRS Website .
Two types of relief are available for small exempt organizations – a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard) , and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.
Small organizations required to file Form 990-N simply need to go to the IRS website, supply the eight information items called for on the form, and electronically file it by Oct. 15. That will bring them back into compliance.
Under the VCP, tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by Oct. 15 and pay a compliance fee.
Jim Minges is the Director of NEKLS. You can reach him by email (jminges (at) nekls.org) or by phone. Visit the 
