Tax News

CCH (cch.taxgroup.com) reports:

The Treasury Department and IRS have issued temporary and proposed regulations addressing the notification requirements for tax exempt entities not currently required to file information returns, in light of the amendments to Code Sec. 6033 by the Pension Protection Act of 2006 (P.L. 109-280). The regulations, which address the time and manner of submitting an annual electronic notice, are effective on November 15, 2007, and apply to tax years beginning after December 31, 2006.
Under Code Sec. 6033(i)(1), small exempt organizations are required to file an annual electronic notice that contains certain specified information. The temporary regulations allow for the IRS to request additional information, such as the tax year for which the notification has been submitted. Furthermore, an organization submitting an electronic notice acknowledges that it is not required to file an information return because its annual receipts do not exceed $25,000. The temporary regulations still require such organizations to notify the IRS, in writing, of any changes to the organization, as required by Reg. §1.6033-2(i).
While the temporary regulations contain no provision for paper submission of the annual notice, organizations may satisfy the notice requirement by filing a completed Form 990, Return of Organization Exempt From Income Tax, or 990EZ, Short Form Return of Organization Exempt From Income Tax. Annual notifications must be submitted on or before the 15th day of the fifth month following the close of the period for which notice is required. To help organizations comply with the notice requirement, the IRS has developed Form 990-N, Electronic Notification (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990EZ, which will be available for filing on-line.
Comments and requests for public hearings must be received by the IRS by February 13, 2008.
T.D. 9366, 2007FED ¶47,075
Proposed Regulations, NPRM REG-104942-07, 2007FED ¶49,775
Other References:
Code Sec. 6033
CCH Reference - 2007FED ¶35,424J
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