Posts Tagged ‘nonprofit organizations’

Non-Profits Lose Tax-Exempt Status

Posted on: May 17th, 2010 by

CPA RockvilleMore than 200,000 small nonprofit organizations are hours away from losing their tax-exempt status because they haven’t filed a new form with the Internal Revenue Service.  Congress required the form, called a 990-N, when it amended the tax code three years ago.  Groups that report $25,000 or less in income, excluding churches, and a fiscal year ending December 31, have until the end of the day today to meet the deadline.  Its very likely that these nonprofits are unaware of the Monday deadline, and they may not find out until January 1, 2011, when they’re notified they have to pay taxes on donations they thought were exempt.  It could take months for them to restore their nonprofit status as well.  Donors who give to the organizations that lose their status, however, will be able to receive tax deductions on gifts until January because the revocations will not be made public until then.  If you are running a small nonprofit organization, do your best to scramble and get your forms in by midnight tonight to ensure you maintain your status.  Contact a CPA if you are unable to get to the form yourself.