Monday, April 26, 2010
New York Times, One-Fourth of Nonprofits Are to Lose Tax Breaks, by Stephanie Strom:
As many as 400,000 nonprofit organizations are weeks away from a doomsday.
At midnight on May 15, an estimated one-fifth to one-quarter of some 1.6 million charities, trade associations and membership groups will lose their tax exemptions, thanks to a provision buried in a 2006 federal bill aimed at pension reform. ...
The federal legislation passed in 2006 required all nonprofits to file tax forms the following year. Previously, only organizations with revenues of $25,000 or more — or the vast majority of nonprofit groups — had to file.
The new law, embedded in the 393 pages of the Pension Protection Act of 2006, also directed the IRS to revoke the tax exemptions of groups that failed to file for three consecutive years. Three years have passed, and thus the deadline looms.
- IR-2010-10, The IRS Reminds Tax-Exempt Organizations of All Sizes to File the Form 990 on Time to Preserve Their Tax Exempt Status
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations — Form 990-N (e-Postcard)
- Chronicle of Philanthropy, Up to 25% of Nonprofit Groups Could Soon Lose Charity Status