IN THE NICK OF TIME

The IRS is granting a brief one-time reprieve to small nonprofit organizations at risk of losing their federal tax-exempt status.

The Pension Protection Act of 2006 mandated that any 501(c)(3) public charity, other than churches and church-related organizations, that failed to file a required Form 990 for three consecutive years would automatically lose their tax-exemption. (Before 2007, it wasn’t necessary for nonprofit organizations with under $25,000 in annual revenue to file.) The three years are now up and some groups are currently not in compliance.

Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard) , and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.Small organizations required to file Form 990-N can go to the IRS website, supply eight information items called for on a form, and electronically file it by October 15 to be back in compliance.Under the VCP, tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by Oct. 15 and pay a compliance fee. Details about the VCP are on the IRS website, along with frequently asked questions.