Nonprofits: Don't Lose Your Tax-Exempt Status!

Dec. 2, 2011 - PRLog -- In June 2011 the IRS announced that 275,000 nonprofits lost their tax-exempt status because they failed to file an annual information return or notice with the IRS for three consecutive years. Was your tax-exempt status revoked? Do you know what file to return each year to maintain your nonprofit status?

In 2006, Congress passed the Pension Protection Act requiring most tax-exempt organizations to file an annual information notice with the IRS. Prior to this Act, nonprofits with gross receipts less than $25,000 were not required to file this notice.

The IRS publishes the revocation list of nonprofits who automatically lose their tax-exempt status on their website at http://www.irs.gov/charities/article/0,,id=240099,00.html, which they update every month.

How to File

In 2006 the IRS introduced Form 990-N Electronic Notice (e-Postcard) for tax-exempt organizations not required to file Form 990 or 990-EZ (now based on organizations with $50,000 or less in gross receipts).

The e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year. For example, if your tax year ends December 31, the e-Postcard is due May 15th of the following year. You cannot file the e-Postcard until after your tax year ends.

For more information about this form and how to electronically submit, visit http://www.irs.gov/charities/article/0,,id=169250,00.html.

How to Get Reinstated as Tax-exempt

You can apply for retroactive reinstatement by filing Form 1023 or Form 1024. These forms can be very time consuming to complete. You must substantiate the reason for not filing and ensure it doesn't happen again. The organization is also required to file all the missing returns and pay all filing fees.

More information about reinstatement can be found on the IRS.gov website at http://www.irs.gov/charities/article/0,,id=240101,00.html.

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