About 275,000 charities may lose tax-exempt status

A few years ago, the IRS stated that charitable organizations that don’t file their tax returns in a timely manner will lose their tax exempt status. In June 2010, the IRS kept its’ word and revoked the tax-exempt status for almost 275,000 organizations in the US.

The rules are simple – if the tax-exempt organization doesn’t file taxes for 3 consecutive years, the tax-exemption is revoked. Smaller Non-profit groups can file simple ‘Post Card’ returns (990 N)if their income is usually below a certain amount but many had simply not filed. So, they were issued a notice about the revocation of the tax-exempt status.

Is your favorite charity among them? The IRS lists in Publication 78 the full list of charities that you can donate to – however that Publication is about the size of a telephone book. Nowadays, you can look up the listing online at http://www.irs.gov/charities/article/0,,id=96136,00.html and you can also download the entire Publication is you wish.

Groups that lost their tax-exempt status can apply for a retroactive reinstatement although there is a fee.

Feel free to send me comments or questions.

 

Thomas Hodge

President

The Hodge Group, Inc.

Advertisements

One thought

This site uses Akismet to reduce spam. Learn how your comment data is processed.