No joy filing 990-N epostcard
Adam H. Kerman
a filing requirement on 990-N, which can be filed electronically only.
This is supposed to be a minor return to file, taking mere minutes.
Years ago, IRS incorrectly changed its record of my organization's fiscal
year. I sent a letter and they finally changed it back months ago. But
the Urban Institute Web site still hasn't been updated with the fiscal
year correction and the tax payer CANNOT correct that error on that
Web site.
IRS itself doesn't offer an electronic filing method.
The problem with filing while the Web site reflects the wrong fiscal
year is that the system prevents filing during what it thinks is for
the same period even though the taxpayer is attempting to file for a
different fiscal year. Also, the Web site prevents filing a return any
later than one year after the close of the fiscal year.
I've spoken to IRS four times about this. Now they tell me that the Urban
Institute's Web site will be updated no later than June 15, and they
really, really, really, really, really mean it this time. They claim
the delay has been due to the inability to remove a great many organizations
that failed with the requirement to file a return at least once every three
years, but that sure doesn't explain why IRS made things so difficult for
a compliant organization to file.
If the deadline is pushed back again, I won't be able to file electronically
for the year ending June, 2010. I just can't file as long as the fiscal
year is wrong as the system will shut me out for the subsequent fiscal
year, forcing me to skip a year anyway. Perhaps I'll call around to a
few CPAs to find one that may let me use their commercial software to
file this return if they don't charge me to do so.
This is for your information if anyone else is adversely affected by
the issue of IRS not updating the Web site of the outside vendor it's using.
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Vic Dura
wrote Re No joy filing 990-N epostcard:
>This is for your information if anyone else is adversely affected by
>the issue of IRS not updating the Web site of the outside vendor it's using.
I've also had problems with the 990-N system. Spoke to the IRS
several times, and it's always "..will be fixed soon..". Sent in
letters, etc. Still not fix.
Going to our congressman now to see if he can help.
--
To email me directly, remove CLUTTER.
Adam H. Kerman
More joy.
A few days ago, I received notice dated July 18, 2011, that my determination
was revoked retroactive to November 15, 2010, the 15th day of the fifth
month, for not having filed for three years.
Using the IRS contractor's Web site, I had filed the first electronic notice
on October 12, 2010. IRS still showed the incorrect fiscal year, even
though I'd written several times asking IRS to correct it. IRS advised me
to file with the wrong fiscal year.
In February, 201l, IRS finally corrected their record of our fiscal year
end. As quoted above, I attempted to use the IRS contractor Web site to
file for 2009 but was unable to connect. An accountant took pity on me
and filed 2009 electronic notice (June, 2010, year end) via Lacerte.
In a conversation with IRS, the woman claimed the system thinks that I
had never filed within the initial three-year period, as the system
shows that I changed the fiscal year, rather than IRS correcting it,
even though I had explained in my letter asking IRS to correct the fiscal
year that it was indeed a correction.
Let me tell you how electronic filing requirements have truly
simplified my life.
Adam H. Kerman
organization that had its 501(c)(3) status automatically revoked by IRS
due to error on their part.
The paperless 990-N filing system ends up not being paperless when IRS
makes error after error after error. Then a significant amount of
correspondence is required, and phone calls.
The organization informed IRS of its June year end on the application on
Form 1023. The organization has never changed its year end. Nevertheless,
IRS changed its record of the organization's year end to a calendar year
on its own initiative.
The organization had no way to correct the year end by filing 990-N via
the IRS contractor Urban Institute. IRS advised me over the telephone to
ignore the fiscal year error and file anyway, which resulted in a 990-N
for June, 2009, appearing as notice for calendar year 2009.
Note that IRS one-time filing relief to prevent automatic revocation had a
deadline of October 15, 2010. I filed that notice (showing the wrong year
end) prior to that date.
After I filed the first notice, I received correspondence from IRS that
they had changed our year end. IRS, however, gave us a short fiscal year
ending June, 2011, rather than correct their error. Apparently this
created a conflict in their system about fiscal years that prevented me
from continuing to use the Urban Institute site to file further 990-Ns and
would later result in automatic revocation.
I had a CPA file the 990-N for year ending June, 201, via Lacerte. IRS
accepted the filing.
Shortly after the close of year ending June, 2011, the CPA attempted to
file 990-N via Lacerte. This time it was rejected.
IRS then sent the organization notice dated July 18, 2011, that its
501(c)(3) status had been retroactively revoked effective November 15,
2010. This is despite the fact that IRS had accepted the filing of two
990-N's for different years.
As I took the position that IRS had revoked 501(c)(3) status in error, I
wrote a letter on August 3, 2011. I requested reinstatement, a correction
of our fiscal years in their database so that no short year is shown,
and a correction that we had filed notice for the year ending June, 2009.
The address I wrote to was
Internal Revenue Service
M/S 6552
1973 North Rulon White Blvd.
Ogden, UT 84404
That is not the address to use when the organization is not taking the
position that revocation was in error.
I attached receipts for the three notices filed (including the rejected
notice), the copy of EO Update with the filing relief deadline, and IRS's
determination letter acknowledging our June year end.
IRS's response was not timely. However, I was told on the phone, today,
that we had been reinstated. I haven't received the letter yet.
The bad news is that, for the second time, IRS changed our fiscal year to
a calendar year. This time, I had the Ogden call center send a memo to the
correct people to change the calendar year, which should be done in 30
days, hah. The trouble is that if it's still not changed by June 30, 2012,
any attempt to re-file the notice for the period ending June, 2011, will
be rejected again.
Lessons learned:
It was a mistake on my part to file notice with the wrong year end. I
should have used Lacerte the first time, as it would have allowed me to
state the year end correctly, or I should have filed a paper return on
Form 990.
IRS is hopeless about correcting its errors the first time they are
brought to its attention. Anticipate additional correspondence.
I don't know what put the organization on the shit list to begin with. I'm
guessing it was the short fiscal year, but I really don't know.
Checking on line at the IRS Web site, the Publication 78 list (just names
of entities) and automatic revocation lists are updated once a month. The
January 23, 2012, update is not there, so our status is still show as
revoked. Of course, I don't know if we were reinstated in time to be on
this update. I may have to wait a month.
The Web site has a note that organizations that were revoked remain on the
revocation list permanently, even after reinstatement. I hope that doesn't
apply to us, as it was IRS's error. If it does, that will be still more
correspondence.
It's not resolved.
Adam H. Kerman
>organization that had its 501(c)(3) status automatically revoked by IRS
>due to error on their part.
IRS published on line a new list of organizations recognized as charitable
(Publication 78). My organization is included in the list.
However, it continues to be listed on the automatic revocation list. I've
been told that it'll be removed from that list on a future update.
If an organization becomes listed on the automatic revocation because it
did indeed fail to file for three consecutive tax years, it remains
on it.
>The bad news is that, for the second time, IRS changed our fiscal year to
>a calendar year.