Non-Profit Charities Could Lose Tax-Exempt Status
Small non-profit charities are required to file a Form 990-N or Form 990-EZ with the IRS, starting in 2007, resulting from legislation passed by Congress in 2006. Although the IRS has attempted to notify existing tax-exempt organizations of this requirement, about 325,000 non-profit charities are not compliant. Churches and church-related groups are not required to file.
The law also stated that any organization failing to file for three consecutive years automatically would lose its federal tax-exempt status. May 17, 2010 triggered the first 'three year rule' target date for non-compliance to federal law.
Organizations with Gross Receipts of $25,000 or Less (Form 990-N)
Non-profit tax-exempt organizations required to file the Form 990-N, can simply access the IRS web site, supply eight items and file electronically by October 15, 2010. The organization then complies with federal regulations and retains its tax-exempt status.
Larger Organizations (Form 990-EZ)
The IRS is offering a voluntary compliance program to larger charities. The organization must file three delinquent returns, pay a small fee by October 15, 2010 and the non-profit organization will retain its tax-exempt status.
Non-compliant Organizations by State
The IRS web site details a list of non-compliant organizations and their last known address by state.
If you are a board member of a tax-exempt organization or charity, check with the board secretary to make sure the organization has filed the required forms, or go to the IRS web site to see if your favorite charity is on the list. Notify the proper persons of the need to file the necessary forms prior to October 15, 2010.
Small non-profit tax-exempt charities provide extensive help and support to their communities across the United States of America. They are vital to the strength of the nation. The IRS urges small groups to retain tax-exempt status by taking time to complete the simple necessary forms by the deadline.
Sources:
Internal Revenue Service News
NewsOK article by Don McCoy, July 27, 2010, 'Thousands of Oklahoma nonprofits in danger of losing tax exempt status', article # 3479879
picture - charity - Don O'Brien, Public Domain, August 1937 Wiki
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5 Comments
Post a CommentMy volunteer fire co is funded by taxes, you want us to pay taxes on taxes?
very good, thanks!
Great info! I've been following the news on this because my family operates a non-profit.
Interesting. I daresay the government would have much more in its coffers if every taxpayer paid his or her taxes!
informative