Is Your Non-Profit Organization Still Tax-Exempt?
If your non-profit organization didn’t file its annual information return with the IRS for the past three years, it may be among the 275,000 that automatically lost its tax-exempt status.
Despite extensive efforts to inform organizations of their obligation to file, the IRS is concerned that some groups, especially small ones, may not be aware they’ve lost their privileged statuses. (Until 2007, there was no filing requirement for small associations with annual gross receipts of $50,000 or less.)
The IRS updates lists of organizations, by state, with tax-exempt statuses that were revoked. These lists can be found on the IRS website and the agency plans to update the lists monthly. In addition to the affected organizations, donors to these charitable groups will also want to use these lists to ensure their contributions are tax-deductible. (And if you find your favorite charities listed here, be sure to let them know!)
Even if you find your non-profit on the IRS’ list of revocations, all hope is not lost; it can apply for reinstatement. The IRS announced transition relief for eligible small organizations, enabling them to regain tax-exempt statuses and pay a reduced application fee. Full details can be found in the IRS publications Notice 2011-43, Notice 2011-44 and Revenue Procedure 2011-36.
If your organization needs help filing its annual information return, we’d welcome the chance to serve you. Contact the experienced CPAs at OSA&C by calling 904-398-4747 or visit our contact page and we’ll give you a call.
