OUR THOUGHTS ON:

Relief for Automatically Revoked Tax-Exempt Organizations Affected by Hurricane Sandy

Not-for-Profit

By Sarah Piot

Organizations that lost their tax-exempt status because they failed to file a required annual electronic notice (Form 990-N e-Postcard) for taxable years beginning in 2007, 2008 and 2009 have until December 31, 2012 to file and apply for retroactive reinstatement. The Internal Revenue Service ("IRS") recently announced in Notice 2012-71 relief for some small tax-exempt organizations affected by Hurricane Sandy. Under this notice, the IRS has extended the deadline for the filing until February 1, 2013.

To be eligible for the deadline extension, the organization's principal place of business must be located in the covered disaster area, or records necessary to meet the application deadline must be maintained in the covered disaster area. The IRS has identified the following as disaster areas:

  • Tax Relief in Connecticut: Fairfield, Middlesex, New Haven and New London counties and the Mashantucket Pequot Tribal Nation and Mohegan Tribal Nation located within New London County; 
  • Tax Relief in New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren counties; 
  • Tax Relief in New York: Bronx, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Sullivan, Suffolk, Ulster and Westchester counties; 
  • Tax Relief in Rhode Island: Newport and Washington counties.

If an eligible organization files its application for exemption on or before the relief deadline of February 1, 2013, it will be treated as being timely filed on December 31, 2012. The organization should note "NOTICE 2011-43" and "SANDY RELIEF" on the top of the application and on the envelope.

If an organization is located outside the affected areas noted above and think they may qualify for relief they should contact the IRS at 866-562-5227.

Please contact a member of the Schneider Downs Not-for-Profit Services Team with any questions or comments regarding this article.

© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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