On May 17, 2010, nonprofits with revenues of less than $25,000 were required for the first time to file an annual report with the Internal Revenue Service (IRS)The Internal Revenue Service (IRS) is part of the U.S. Department of the Treasury and is responsible for enforcing and administering federal tax laws, processing tax returns, performing audits, and offering assistance for American taxpayers. . Nonprofits that fail to do so jeopardize their taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. -exempt status.
That was nearly the case for the Afro American Historical Association of the Niagara Frontier, which filed its information May 17 – the final deadline for organizations with a Dec. 31 fiscal year-end. Barbara Nevergold is president of the volunteer board of the organization, which has 300 members and no paid staff.
“We had not been notified by any of the regulatory agencies that we were not in compliance,” she says. “We had no idea that we had other forms to complete.”[…]
The day after the May 17 deadline, a statement on the IRS Web site by Commissioner Doug Shulman acknowledged many organizations still missed the deadline, but said the IRS plans to work with small organizations to do what it can to help them avoid losing their tax-exempt status. He also urged organizations to file, even if they’ve passed the deadline.
Despite the IRS assurances, it’s likely there will be hundreds of organizations that will still lose their exempt status simply because they are small, leadership changes annually or they’re just not aware of the change, Sauer says.
A good number of the nation's nearly 1 million nonprofits may simply disappear. The Urban Institute is maintaining a database of threatened groups.
Read the full article here: Tax exemptions at risk for some nonprofits – Business First of BuffaloShare