April 14, 2020
Authored by: Keith Kehrer
Last month, the IRS announced that certain taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. The IRS has extended this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. The extensions apply to many forms and tax payments made by tax-exempt organizations, including:
- Form 990-series annual information returns or notices (Forms 990, 990-EZ, 990-PF, 990-BL, 990-N (e-postcard))
- Forms 8871 and 8872
- Form 5227
- Form 990-T
- Form 1120-POL
- Form 4720
- Form 8976
IRS operations during COVID-19: mission-critical functions continue
In response to the coronavirus (COVID-19) crisis, the IRS is continuing with mission-critical activities for the nation but islimiting some operations. To protect the public and employees, and in compliance with orders of local health authorities around the country, certain IRS services such as live assistance on telephones, processing paper tax returns and responding to correspondence are extremely limited or suspended until further notice. As a result, the following services related to Tax Exempt and Government Entities are suspended until further notice:
- Telephone customer accounts services
- Some updates to Tax Exempt Organization Search
IRS.gov remains the best source for tax law questions. Continue to visit IRS.gov and our Charities and Nonprofits page for information, news, and educational resources about charities and other tax-exempt organizations. Refer to Revenue Procedure 2018-32 for more information for grantors and contributors to tax-exempt organizations on deductibility and reliance issues.
IRS updates on COVID-19 related issues are posted onIRS.gov/coronavirus.
The Families First Coronavirus Response Act (Families First Act) and The Coronavirus Aid, Relief, and Economic Security (CARES) Act
The Families First Act and the CARES Act provide considerable relief for exempt organizations, including grants, loans, tax credits, and other assistance.
Visit IRS.gov/coronavirus for the latest information about eligibility details and other requirements for the tax provisions under these Acts.
Acceptance of imaged and digital signatures and the electronic transmission of documents
As part of the response to the COVID-19 emergency, the IRS will temporarily allow employees to accept:
- Images of signatures (scanned or photographed) and digital signatures on documents related to the determination or collection of tax liability
- Documents via email and to transmit documents to taxpayers using SecureZip or other established secured messaging systems
This change expires July 15, 2020. Visit IRS.gov for details (PDF).
Annual revenue procedures
- Added Section 2.04, which announced the electronic Form 1023.
- Amended Section 6.08(2) to add that an organization applying for recognition of tax-exempt status after 27 months from formation under Section 501(c)(3) can’t use Form 1023-EZ if it seeks an effective date earlier than the submission date, but instead must file a Form 1023.
- Amended Appendix A to reflect determination letter user fees as of July 1, 2020.
- Modified Rev. Proc. 2020-5 to provide that Form 1023 must be submitted electronically online atpay.gov. However, paper submissions of Form 1023 will be accepted if postmarked on or before April 30, 2020.
New mailing addresses for Form 941
The mailing addresses for paper Form 941 have changed. Avoid delays by checking pre-printed envelopes to ensure the address is correct. You can also file and pay electronically for faster processing.
EO Internal Revenue Manual revisions
IRS recently obsoleted 57 Exempt Organization Internal Revenue Manual (IRM) sections, which are being converting to Technical Resource Guides. Information from these IRM sections can still be found on IRS.gov using the “Search” feature.
Recent IRS News Releases
- IRS revises Form 1023 for applying for tax-exempt status
- IRS outlines new tax law effect on tax exempt organizations
- IRS recommends e-filing of payroll tax returns
- IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance program
- Filing and Payment Deadlines Questions and Answers
- Longtime tax pro Erin Collins begins as new National Taxpayer Advocate; Collins takes on job early to help with COVID-19 response
- Employee Retention Credit available for many businesses financially impacted by COVID-19
- FAQs: Employee Retention Credit under the CARES Act
- COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs
- IRS issues warning about Coronavirus-related scams
- Follow IRS on social media, sign up for e-news subscriptions for urgent updates on COVID-19, scams and economic impact payment information
- IRS urges taxpayers to use electronic options; outlines online assistance
Visit IRS.gov for a complete listing of news releases for the current month.