Is Your Nonprofit at Risk for Losing Exempt Status?

Perhaps you’ve seen the Dan Stockman article published in today’s Journal-Gazette, “Non-profits could lose tax-exempt status“?

Stockman references a list compiled by the IRS and the Urban Institute listing 395 Allen County organizations at risk of losing their status.

See the Urban Institute list now, to see if your organization is at risk.

What’s this all about? Three years ago, the IRS changed its stance on filing requirements and asked organizations with under $25,000 in revenue to begin to file a 990, the tax information form for public charities. If organizations have failed to file for the last three years, they may have lost their tax-exempt status.

What to do? Check the list with the Urban Institute first.  If your organization is not listed, relax. You have filed your forms as needed.

If your organization is listed, file the 990.

In his article, Dan Stockman offers the following information:

“IRS Commissioner Doug Shulman encouraged organizations to file their form, even if they missed the deadline.

“These organizations are vital to communities across the United States, and I understand their concerns about possibly losing their tax-exempt status,” Shulman said in a statement on the IRS website, “I want to reassure these small organizations that the IRS will do what it can to help them avoid losing their tax-exempt status.”

Shulman said the agency will send out guidance soon on what organizations can do to keep from having their tax-exempt status from being automatically revoked.”

Marilynn was contacted in the middle of program yesterday by Dan for comment and offers the following, she “suspects many on the list in danger of doing so are either already inactive or have so little activity they thought they did not need to file.” A quick look at the list would probably put your fears to rest.

– Lettie

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