Exempt Organizations Bulletin (May 2006)
IRS Reminds Large Exempt
Requirements for May 15
Wainwright, a tax partner in our Palo Alto office.
This article concerning the
new requirement that certain large exempt organizations file their
2005 IRS Forms 990 (generally due May 15, 2006)
in electronic format is part of the
Shaw Pittman LLP Tax
Page, a World Wide Web demonstration project, no
portion of which is intended and cannot
be construed as legal or tax advice.
on the design or content of this material.
On May 2, 2006, the Internal Revenue Service
reminded certain large exempt organizations that their annual
information returns for 2005 must be filed electronically by May 15,
2006. IRS News Release 2006-73.
This new electronic filing requirement
was imposed by temporary
regulations adopted in early 2005 (T.D.
9175), and generally applies to any exempt organization required to file
IRS Form 990, Return of Organization Exempt from Tax, or IRS Form
990-PF, Return of Private Foundation or Section 4947(a)(1) Trust
Treated as a Private Foundation, for a taxable year if the organization is required to file at least 250 returns (including information returns, such
as IRS Form W-2, Wage and Tax Statement, or IRS Form 1099-MISC,
Miscellaneous Income) with the IRS during the calendar year ending with or within that taxable year.
However, the effective date provisions cause the electronic filing requirement
to apply for taxable years ending on or after December 31, 2005 (and before
December 31, 2006) only to exempt organizations having
at least $100 million
in assets. For taxable years ending on or after December 31, 2006, the
electronic filing requirement applies to any exempt organization having at least
$10 million in assets and to any private foundation or other organization
required to file IRS Form 990-PF, without regard to the amount of the private
foundation's or other organization's assets.
The IRS also reminded exempt organizations that they can
obtain an authomatic
three-month extension to file IRS Form 990 or 990-PF by filing
IRS Form 8868.
This material is not intended to constitute a complete analysis of all
tax considerations. Internal Revenue Service regulations generally
provide that, for the purpose of avoiding United States federal tax
penalties, a taxpayer may rely only on formal written opinions meeting
specific regulatory requirements. This material does not meet those
requirements. Accordingly, this material was not intended or written to
be used, and a taxpayer cannot use it, for the purpose of avoiding
United States federal or other tax penalties or of promoting, marketing
or recommending to another party any tax-related matters.
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