I was reading an article from the Non Profit Times about 275,000 organizations being revoked of their tax exemption status. When I first read the article, I thought that the economic downtown from 2008 has really put the non-profit sector in a bind, but when you read the article more, it’s actually just a formality and unfilled documents.
Non-profits as of 2007 was required to file a 990, 990-EZ, 990-PF or 990-N for three consecutive years to remain tax exempt. The IRS said that they tried to get in contact to every tax exempted organization to file because if not, they would be on the watch list to lose their eligibility of tax exemption. Even the organizations that recorded “annual gross receipts of $50,000 or less” needed to file. The only difference for them is that they paid a lower application fee of $100.
Personally, ever since that report from MSNBC about the federal government screwing (more or less) homeowners that were on the brink of foreclosure, I just can’t put my full trust that they will inform everyone that would be affected by their policy changes. *OFF-TOPIC* This report basically said that there was a government program that allowed homeowners who were on the verge of foreclosure to take an emergency loan from the government and only had 48 hours to complete the necessary paperwork (from Wednesday). So hearing that 275,000+ organizations are losing their tax exempt status doesn’t come to a shock to me. I’m pretty sure that there will be a way to gain it back though. It’s not the end of the world for them.
You can read the article in it’s entirety at: