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.
The Hodge Group, Inc.