Following is from an IRS press release on September 22: “A few years ago, Congress passed a law requiring all tax-exempt organizations, even the smallest ones, to file an annual return with the Internal Revenue Service. Any organization that does not file for three consecutive years automatically loses its federal tax exemption. Churches and some church-related organizations are among the few exceptions.
“The first three-year deadline for filing those returns was May 17, 2010. While thousands of organizations did file, a significant number did not.
“The IRS recognizes the value these local organizations give to their communities, so it extended the filing deadline to October 15, 2010. It also published a list with the names and last known addresses of organizations that are at risk of losing their tax exempt status. ‘The last thing we want to do here at the IRS is have these groups lose their tax-exempt status because they haven’t filed a short, simple form,’ said IRS Commissioner Doug Shulman.
“The smallest organizations, with less than $25,000 annual receipts, should file a 990-N (ePostcard). The ePostcard asks only eight questions and is filled out and sent using the Internet. Larger organizations eligible to file the 990-EZ must file their past due returns by October 15 and pay a compliance fee.
“You can help by checking the “At-Risk List” or telling the local organization about the list. The list and information on keeping tax-exempt are at www.irs.gov/charities.”
Those are the IRS’s comments.
The IRS is trying to get the word out. Their web site has a very helpful page here. The list of organizations they are aware of that will loose their exempt status in October can be found here.
If you are involved with an NPO with income under $25,000, or you have an inactive NPO that is a part of your ministry but is “on the shelf”, make sure you have filed a 990-N. If you know of a little NPO, ask if they have filed.