Did you start a 501c3 a few years ago and never filed an annual report with the IRS? Don’t lose your 501c3 Status.
Many small not-for-profit organizations are in jeopardy of losing their 501c3 status due to recent regulations requiring organizations to file form 990N online.
In the past most organizations with annual revenues under $25,000 were not required to file.
The Pension Protection Act of 2006 requires the IRS to revoke the federal tax exemption of any organization that is required to file an annual return (Form 990-N, 990-EZ, 990, or 990-PF) and has failed to do so for three consecutive years. Nonprofits that wish to have their exemptions reinstated will be required to re-apply to the IRS for tax-exempt status. This process can take several months.
The IRS will begin revoking exemptions on
May 17, 2010 October 15, 2010, but will wait until 2011 to send revocation notices. ( The May 17 October 15 deadline applies to exempt organizations whose fiscal year ends on December 31.
“Ultimately, the revocation process will benefit the nonprofit sector by weeding out defunct organizations and nonprofits that are not meeting their reporting responsibilities,” explained Bob Ottenhoff, president and CEO of GuideStar. “In the short run, however, it will cause hardship for some organizations.”
Learn more at: http://bit.ly/drgU99