IRS Revises Procedures for Processing Form 990 Extension Requests - February 2008
The IRS has revised the procedures for processing extension requests for filing Form 990, Return of Organization Exempt From Income Tax. Generally, exempt organizations requesting an extension of time to file their Form 990 receive an additional three months to file and may make a second request for an additional three months if necessary. Under the new procedures, the IRS sends the exempt organization Notice CP 211 notifying them of the action taken regarding the extension request. Notice CP 211 is mailed to the organization at the address listed in the IRS records. Under the new procedures, the IRS will NOT be sending a copy of the notice to your representative (e.g., accounting firm).
If you would like your representative to receive a copy of the action taken (i.e., Notice CP 211), you must file a Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization.
WHAT DOES THIS MEAN TO YOU AND YOUR ORGANIZATION?
Since your representative, such as your accounting firm, will no longer be notified by the IRS of the action taken related to your organization’s Form 990 extension request, you must either (1) notify your organization’s front desk, office manager or mail room that all IRS correspondence be delivered to the person responsible for overseeing the preparation of the Form 990, or (2) complete and submit a Form 2848 or Form 8821 authorizing your accounting firm or other paid preparer to receive a copy of the notification.
Generally, the IRS approves properly completed extension requests. It is important to note that if your extension request is denied, your organization has 30 days from the notice to file a complete and accurate Form 990. As such, it is important to contact your accounting firm immediately if your organization receives a denied extension request.
If you have any questions about this new IRS procedure, please contact your RSM McGladrey advisor.
