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275,000 Nonprofits That Failed to File Returns Lose Tax-Exempt Status

June 9, 2011, 1:15 pm

Hundreds of nonprofit organizations with links to colleges are among some 275,000 nonprofits that have been stripped of their tax-exempt status by the Internal Revenue Service because they have failed to file tax returns three years in a row. Many of the organizations—which include local chapters of alumni associations and a variety of other groups—are believed to be defunct, according to The Chronicle of Philanthropy. But others may not realize that a 2006 law requires even the smallest nonprofits to file returns, which they had not been required to do before. The Chronicle of Philanthropy’s site includes a searchable database of organizations that have run afoul of the new law.

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  • http://twitter.com/bcbailey64 Brian Bailey

    Always a party at Chronicle’s teaching Carnival!! Great resources!

  • c3book

    The IRS is offering transitional relief for small revoked groups.  It’s one of the best deals I’ve seen in my four decades of professional involvement with non-profit taxes.  If you can honestly say there is still a need for your non-profit, and you feel you can muster the human and other resources needed to sustain it, don’t pass up this opportunity to regain your tax exempt status. 
     
    There are no shortcuts.  You will have to fill out a new exemption application and pay an IRS User Fee.  But for organizations with annual gross receipts normally less than $50,000, the User Fee will be reduced to only $100 and reinstatement will be retroactive. The offer is only good through December 31, 2012. You can find the details  at http://www.irs.gov/pub/irs-drop/n-11-43.pdf

    Sandy Deja
     

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