Form 990 nonfilers will be able to save their tax-exempt status.
IRS is developing a voluntary correction program http://www.kiplinger.com/members/taxlinks/032008/IRS-EO-FY08.pdf to let nonprofits file missing information returns and pay any taxes and interest they owe.
Under a 2006 law, organizations lose their tax exemption automatically if they fail to file three years in a row. This penalty also applies to small nonprofits that have to start filing the new e-postcard in May.
IRS will probably launch the new program late this year or in early 2009.
Robert M. Swaim, EA
SWAIM & ASSOCIATES
Accountants and Tax Advisors
1101 West Market Street
Greensboro, North Carolina 27403
336-274-5230 Telephone
336-274-5751 Facsimile
www.CarolinaTax.net