Organizational changes and exempt status.
If your exempt organization changes its legal structure,
such as from a trust to a corporation, you must file a new
exemption application to establish that the new legal entity qualifies
for exemption. If your organization becomes inactive for a
period of time but does not cease being an entity under the laws of
the state in which it was formed, its exemption will not be
terminated. However, unless you are covered by one of the filing
exceptions, you will have to continue to file an annual information
return during the period of inactivity. If your organization has been
liquidated, dissolved, terminated, or substantially contracted,
you should file your annual return of information by the 15th day of
the 5th month after the change and follow the applicable instructions
to the form.
If your organization amends its articles of organization or its
internal regulations (bylaws), you should send a conformed copy of
these changes to the appropriate EO area manager. (An organization
that is covered by a group exemption letter should send two copies of
these changes.) If you did not give the IRS a copy of the amendments
previously, you may include it when you file Form 990 (or 990-EZ
or Form 990-PF), if that return is required.
Change in accounting period.
The procedures that an organization must follow to change its
accounting period differ for an individual organization and for a
central organization that seeks a group change for its subordinate
organizations.
Individual organizations
that wish to change annual accounting periods generally need only
file an information return for the short period indicating that a
change is being made. However, if the organization has changed its
accounting period within the previous 10 years, it must file Form
1128, Application to Adopt, Change, or Retain a Tax Year.
Form 1128 is attached to the short period return. See Revenue
Procedure 85-58.
Central organizations
may obtain approval for a group change in annual accounting period
for their subordinate organizations on a group basis only by filing
Form 1128 with the Ogden Service Center. The address is given on page
7 under Information Required Annually. For more
information, see Revenue Procedure 76-10, as modified by Revenue
Procedure 79-3 or later update.
Form 1128
must be filed by the 15th day of the 5th month following the close
of the short period.
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