Exempt Organizations Advisory - IRS Provides Additional Tax Relief for Katrina Victims

In addition to their promise to expedite processing of exemption applications submitted by organizations providing hurricane relief, the IRS has postponed the following filing requirements for exempt organizations until October 31, 2005:

• Time for electing on Form 5768, Election/Revocation of Election by an Eligible Sec. 501(c)(3) Organization to Make Expenditures to Influence Legislation;
• Time for filing Form 1024, Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120, to be recognized as exempt under section 501(c)(9) or 501(c)(17);
• Time for filing Form 1023, Application for Recognition of Exemption, to be recognized as exempt under section 501(c)(3);
• Time for filing electronically Form 8871, Political Organization Notice of Section 527 Status;
• Time for filing annual exempt organization returns, Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, by certain tax-exempt political organizations;
• Time for filing annual returns of organizations exempt under Code section 501(a); and
• Time for filing report required to be filed annually by a central organization of a group ruling regarding the status of members of the group.

The IRS also announced special relief for individual taxpayers in the Hurricane Katrina disaster areas. These taxpayers will have until October 31, 2005, to file tax returns and submit tax payments. The IRS will abate interest and any late filing or late payment penalties that would otherwise apply.

According to prepared remarks by Treasury Secretary John W. Snow, the Treasury and the IRS have taken these steps to "provide tax relief to hurricane victims, and to encourage charitable giving during this difficult time of national disaster and recovery." "We know that the last thing people in the devastated areas of the Gulf Coast need to worry about right now is taxes," said Snow.

More information on tax relief for victims of Hurricane Katrina can be found here.

For more information on this topic, please contact Catherine W. Wilkinson or Suzanne Ross McDowell.

The Exempt Organization Advisory is a general summary of the law and is not intended as specific legal advice for any organization.

Internal Revenue Service - Circular 230 Disclosure: As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

For more information on this topic, please contact the authors or the attorneys with whom you usually work at Steptoe.

Questions and comments about the Exempt Organizations Advisory are always welcome and should be sent to bstone@steptoe.com.