365,000 Small Non-Profits Might Lose Tax-Exempt Status Today
Back in 2006, the Pension Protection Act instituted a new requirement: that all non-profits need to file a 990-N annual return with the Internal Revenue Service
Jul 31, 2020196K Shares3.7M Views
Back in 2006, the Pension Protection Act instituted a new requirement: that all non-profits need to file a 990-N annual return with the Internal Revenue Service in order to retain their tax-exempt status. Before then, non-profits with annual revenues less than $25,000 did not need to file papers.
Small, non-religious non-profits that have not filed a tax exemption since 2007 lose their status today. And the Urban Institute estimatesthere might be up to 365,000 of them. Those organizations will need to file papers, pay a fine and possibly pay back taxes. The Urban Institute has createdan online map where people can input their zip codes to see charities in their neighborhoods that might be impacted. (There were more than 100 in my neighborhood alone.) The think tank and other groups, such as National Council of Nonprofits, are urging non-profits to file today. The IRS has indicated it might provide some lenience, but expects non-profits to comply with the new law.
Hajra Shannon
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