Transactional

By: Theodore F. Claypoole

Tax-exempt organizations that do not satisfy annual filing requirements for three (3) consecutive years automatically lose their tax-exempt status. The Internal Revenue Service (the “IRS”) has published a list at http://www.irs.gov/pub/irs-tege/pa.pdf, which identifies those Pennsylvania organizations for which the IRS does not have a record of a required annual filing for 2007 and 2008, and whose 2009 return, due on or after May 17 and before October 15, 2010, has not yet been received. The IRS is offering a one-time relief program that will allow small tax-exempt organizations to come back into compliance and retain their tax-exempt status even though they failed to file for three (3) consecutive years.

Small organizations required to file Form 990-N need to go to the IRS website, supply the eight information items called for on the form, and electronically file it by October 15, 2010, while tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by October 15, 2010 and pay a compliance fee. Organizations required to file Form 990 or Form 990-PF are not eligible and are automatically revoked if they fail to file for three (3) consecutive years. Details about the one-time relief program are on the IRS website at http://www.irs.gov/charities/article/0,,id=225702,00.html.

For information on how to participate in the IRS’ one-time relief program or for questions on how to form or maintain a tax-exempt organization, please contact Theodore F. Claypoole at 610-692-1371 or tclaypoole@utbf.com.

Theodore F. Claypoole

Theodore F. Claypoole is a partner at Unruh, Turner, Burke and Frees, Theodore practices in the areas of Pennsylvania Commercial Transactions and Business Organizations, Pennsylvania Land Use and Construction, Pennsylvania Real Estate, and Tax-Exempt Organizations. The firm maintain law offices in Malvern, Phoenixville, and West Chester Pennsylvania which serve the Main Line, and many surrounding communities such as Devon, Exton, West Chester, Ardmore and others.

By: Theodore F. Claypoole

The Pennsylvania Department of Treasury is offering amnesty from penalties and interest to unclaimed property holders who voluntarily come into compliance with Pennsylvania’s Disposition of Abandoned and Unclaimed Property Law before October 31, 2010. Businesses and tax-exempt entities, which hold unclaimed property, are required to file an unclaimed property report with the Department of Treasury each year.

For information on how to participate in the Department of Treasury’s amnesty program, please contact Theodore F. Claypoole.

By: Theodore F. Claypoole

On July 22, 2010, Attorney General Tom Corbett announced legal action against various home improvement contractors for violations of Pennsylvania’s Home Improvement Consumer Protection Act. The Press Release can be found on the Attorney General’s website.

For information on how to comply with Pennsylvania’s Home Improvement Consumer Protection Act, please contact Theodore F. Claypoole.