Exempt Organizations Advisory - Important Clarification

The purpose of this Exempt Organization Advisory is to clarify a statement in our Advisory sent out this morning entitled, "IRS Provides Formula for Telephone Excise Tax Refund." In that Advisory, we stated that "only those exempt organizations that file Form 990-T can obtain a refund."

We want to clarify that, for purposes of obtaining a refund of telephone excise tax, an exempt organization can file a Form 990-T even if it does not have taxable income to report.

The required Form 8913 should be attached to the Form 990-T. (Details on the telephone tax refund will be included in 2006 tax return materials and on the IRS’s Charities and Nonprofits website. 2006 tax returns, including the Form 8913, have not yet been published.)  

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.

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