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275,000 Non-Profits Lose Tax-Exempt Status

By Stephanie Rabiner, Esq. | Last updated on

Nearly 275,000 organizations nationwide had their status as a non-profit revoked last week, with the Internal Revenue Service releasing a list of non-profit groups that either failed to complete the required forms or had not submitted documentation for the last three years.

Though this represents about 17% of non-profits across the country, The NonProfit Times reports that a large portion of the listed organizations are no longer in existence or have reformulated into new organizations.

But what about the nonprofit organizations that still exist?

If you happen to have had your nonprofit status unintentionally revoked, here's what you need to do.

Prior to 2006, small organizations with an annual income less than $25,000 did not have to file yearly paperwork. However, as of 2007, nearly all exempt organizations must file annually with the IRS or risk losing tax-exempt status.

If your business had its status as a nonprofit revoked, there may still be some time to file your paperwork.

If your organization has annual gross receipts below $50,000, the IRS has special provisions that allow you to apply for reinstatement before the end of 2012.

Other organizations that had their nonprofit status automatically revoked may also be able to apply for reinstatement.

If you're unsure whether you qualify for either of these options, call the IRS help number for information.

And in the future, remember that, in all likelihood, you will need to file yearly forms with the IRS if you wish to maintain your tax-exempt status. The IRS is providing a bit of leeway given the recent changes in law, but next time you might have to go to greater lengths should your status as a non-profit be revoked.

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