Monday (May 17) is the deadline for thousands of small nonprofits that must file a new form with the IRS or risk losing their tax-exempt status, the AP reports. An excerpt:
It’s most likely the nonprofits aren’t aware of the Monday deadline that only applies to groups that report $25,000 or less in income, excluding churches. Those organizations may not find out until Jan. 1, 2011, when they’re notified they have to pay taxes on donations they thought were exempt. And it could be months before their nonprofit status is restored.
Congress required the form, called a 990-N, when it amended the tax code three years ago and groups with a fiscal year ending Dec. 31 had until Monday to meet the deadline.
Tom Pollak, program director for the Urban Institute’s National Center for Charitable Statistics, said loss of tax-exempt status means organizations must file income tax returns and pay income tax. Its contributors can no longer deduct their donations, and the groups are not likely to be awarded grants.
