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Tax Exemption and IRS Revocation Letter Alert

All agents and employees working with 4-H, CEOS and Master Gardeners:

Finance & Business

Reports are many have received mailed IRS letters about losing “Tax Exemption” and “Revocation.”

It is important to understand each individual organization that receives IRS correspondence should call and confer with the IRS on these matters for resolution. The IRS will not speak with Extension Finance and Business staff about these matters, only board members are permitted by the IRS to speak on the group’s behalf.

In the majority of IRS letters that Extension Finance and Business has reviewed, these letters are specific as to what they need for completion of filing. Normally it is reporting for the year that is missing. If there are concerns or questions about 990-N filing, browse this 990-N information link which includes a link to complete the actual filing Volunteers should be working closely with local agents to resolve these matters as they arise.

For letters stating, “You didn’t file a required annual tax return” here are some steps to help with requirements:

  • Page 1: 2016 Tax year was due for filing November 15, 2016. This letter says this filing was not done. Please browse the following link to submit a filing of form 990-N.
  • Page 2: Nothing to do.
  • Page 3: Please complete 990-N filing online. Print a copy of the filing/acceptance and attach to IRS return mailing. Then, at the bottom of page 3, check that you are enclosing signed and dated copy and a brief reason of late filing.
  • Page 4: The appropriate box to check would be “My organizations gross receipts are normally $50,000 or less and is not a 509(a)(3) supporting organization so we filed or will file form 990-N.” Sign, date and send copy of 990-N with IRS correspondence.

This should put the group back into the good graces of the IRS and back on track with filing.

If you have other questions or would like to discuss this more, please contact Sean Beatty .