Thousands of nonprofits could lose their status

Hundreds of thousands of nonprofits around the country are about to lose their tax-exempt status for failure to file annual returns with the IRS.

It’s being called a ‘doomsday’ for nonprofits and experts estimate that as many as 400,000 of the nation’s 1.6 million nonprofit organizations will no longer be able to legally accept tax-deductible donations after May 15.

The Pension Protection Act of 2006 requires the IRS to revoke the federal tax exemption of any organization that has failed to file three consecutive annual returns (Form 990-N, 990-EZ, 990, or 990-PF).  Historically, only nonprofits with annual gross revenue in excess of $25,000 were required to file Form 990.  Now, all nonprofits are required to file.  There are no extensions.  Organizations that fail to meet the May 15 deadline this year will be required to re-apply for 501(c)3 status.

You can check to see if your organization is on the list at http://nccsdataweb.urban.org/PubApps/990search.php.

More information about filing requirement can be found on the IRS website at http://www.irs.gov/charities/article/0,,id=217087,00.html.