Coran Ober P.C.

1 in 4 Non-Profts May Lose Tax Exempt Status

Starting May 15, 2010 non-profits that have not filed their Form 990’s for the last 3 years will lose their federal tax exemption. It is estimated that as many as 400,000.00 or 1 in 4 charities, trade associations and membership groups will be effected.

The Pension Protection Act of 2006 requires the IRS to revoke the federal tax exemption of any organization that has failed to file 3 years of tax returns (Form 990-N, 990-EZ, 990, or 990-PF). Nonprofits that lose their exemptions will mostly likely face serious consequences such as potential tax liability and the loss of grants and contributions. Reinstatment of exempt status will involve re-applying with the IRS, a time consuming process that may take several months.

This new policy will be especially hard on small non-profits with annual receipts of less $25,000.00. Historically such orgnaizations did not have to file a return and because of their size these groups are more likely to have overlooked the changes to the law. The good news is the 990-N requires relatively simple information (identification number, tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less) and is easy to file.

So if you are a non-profit that has not filed its 990’s it is important that you do so immediately before time runs out!

For more information about Form 990 requirements or non-profits generally please contact Alexis Soterakis Esq. at (718) 767-1177 or asoterakis@coranober.com.

See a recent NYT Article:
http://www.nytimes.com/2010/04/23/us/23exempt.html?emc=eta1

See the IRS Notice:
http://apps.irs.gov/newsroom/article/0,,id=218550,00.html

As many restaurateurs and bar owners know from painful experience, over the past year it has taken 6 to 8 months, sometimes even longer for the New York State Liquor Authority to issue liquor licenses. Finally, the Liquor Authority has developed a solution to the problem.
On September 11, 2009 the Liquor Authority started a new Self Certification Program. The program allows attorneys filing a retail application to certify that the statements and documents provided in the application are true and accurate and that that application meets all statutory requirements. This new self-certification will allow a faster review period because the Liquor Authority will rely on the information provided by the attorney, and thus eliminate the need to review each document submitted. Under the Self Certification Program some applications have been processed in as little as two weeks.

Though it is not required that an attorney prepare the retail application, the new program greatly increases the incentives for small businesses to hire an attorney to prepare their liquor licenses.

If your business needs a liquor license, please call Coran Ober P.C. at (718) 767-1177.

See the related article in the New York Times:

State Liquor-License Delays Ease
by Glenn Collins
Published: October 27, 2009

http://www.nytimes.com/2009/10/28/dining/28liquor.html

New York State Liquor Authority Announces Self-Certification Program

As many restaurateurs and bar owners know from painful experience, over the past year it has taken 6 to 8 months, sometimes even longer for the New York State Liquor Authority to issue liquor licenses. Finally, the Liquor Authority has developed a solution to the problem.

On September 11, 2009 the Liquor Authority started a new Self Certification Program. The program allows attorneys filing a retail application to certify that the statements and documents provided in the application are true and accurate and that that application meets all statutory requirements. This new self-certification will allow a faster review period because the Liquor Authority will rely on the information provided by the attorney, and thus eliminate the need to review each document submitted. Under the Self Certification Program some applications have been processed in as little as two weeks.

Though it is not required that an attorney prepare the retail application, the new program greatly increases the incentives for small businesses to hire an attorney to prepare their liquor licenses.

If your business needs a liquor license, please call Coran Ober P.C. at (718) 767-1177.

See the related article in the New York Times:

State Liquor-License Delays Ease
by Glenn Collins
Published: October 27, 2009

http://www.nytimes.com/2009/10/28/dining/28liquor.html

IRS Grants Reprieve for Non-Profts

Small non-profits now have until October 15, 2010 to file their tax returns for the last three years. Non-profits that fail to file their Form 990’s for the last 3 years will lose their federal tax exemption. It is estimated as many as 400,000.00 or 1 in 4 charities, trade associations and membership groups will be effected.

On July 26, 2010 the IRS announced a one-time relief program and extended the filing deadline for filing returns from May 15, 2010 to October 15, 2010. Further the IRS posted a list of at-risk organization on its website at:

http://www.irs.gov/charities/article/0,,id=225889,00.html

The Pension Protection Act of 2006 requires the IRS to revoke the federal tax exemption of any organization that has failed to file 3 years of tax returns (Form 990-N, 990-EZ, 990, or 990-PF). Nonprofits that lose their exemptions will mostly likely face serious consequences such as potential tax liability and the loss of grants and contributions. Reinstatement of exempt status will involve re-applying with the IRS, a time consuming process that may take several months.
For more information see the IRS announcement at:

http://www.irs.gov/newsroom/article/0,,id=225959,00.html

So if you are a non-profit that has not filed its 990’s it is important that you do so immediately before time runs out!

For more information about Form 990 requirements or non-profits generally please contact Alexis Soterakis Esq. at (718) 767-1177 or asoterakis@coranober.com.