Up to 15,000 Illinois Nonprofits Could Lose their Tax-Exempt Status if They Don't File by May 17

Tuesday, May 11, 2010

NationalCouncilOfNonprofitsLogo Update as of May 18, 2010: The IRS has extended the deadline and will soon offer more guidance to nonprofits. In the meantime, it encourages nonprofits to file their 990

Our good friends at the National Council of Nonprofits (to which we belong) are working hard to spread the word: May 17, 2010 is the deadline for nonprofits that have not filed an annual return in the past three years (even those with gross receipts normally under $25,000) to file or face automatic revocation of their tax-exempt status.

Organizations that lose their tax-exemptions may not receive tax-deductible contributions and will have to file all over again for recognition as tax-exempt with the IRS.

Find out whether your nonprofit is at risk of losing its tax-exempt status because it hasn’t filed annual returns with the IRS. Check the list -- we did, and it appears that as many as 15,000 organizations in Illinois are vulnerable.

Small organizations should know that the 990-N or the "ePostcard" is easy to complete. It only takes a few minutes to fill out eight simple questions. File by May 17th!

 Some important things to remember:

  • The Form 990-N e-postcard is not for everyone. If your organization's gross receipts are normally in excess of $25,000, you must file a Form 990 and not the e-postcard.
  • If your organization is included in a group exemption, it might still show up on this list even though your parent organization may be including your financial information in its group return. Check with your parent organization or your accountant to be sure that the annual filings are being made. If your group exemption filings are up to date, you do NOT have to file separately.

Read this fact sheet from the IRS or go to the National Council of Nonprofits -- http://www.councilofnonprofits.org/  -- for more information about filing annual returns.  And please spread the word!

~ the donors forum team