400,000 Nonprofits Tax Exemption at Risk

The NY Times reported that As many as 400,000 nonprofit organizations are weeks away from a doomsday.

At midnight on May 15, an estimated one-fifth to one-quarter of some 1.6 million charities, trade associations and membership groups will lose their tax exemptions, thanks to a provision buried in a 2006 federal bill aimed at pension reform.

“It’s going to be an unholy mess once these organizations realize what’s happened to them,” said Diana Aviv, president of the Independent Sector, a nonprofit trade group.

The federal legislation passed in 2006 required all nonprofits to file tax forms the following year. Previously, only organizations with revenues of $25,000 or more — or the vast majority of nonprofit groups — had to file.

The new law, embedded in the 393 pages of the Pension Protection Act of 2006, also directed the Internal Revenue Service to revoke the tax exemptions of groups that failed to file for three consecutive years. Three years have passed, and thus the deadline looms.

Read more here.

FREE Webinars Offered on IRS Filing Requirements for the 990

The NY Council of Nonprofits' national partner, the National Council of Nonprofits, is offering two FREE webinars for you and your board members!

Get Ready, Get Set, Go! IRS Filing Requirements for Charitable Nonprofits
Two national webinars: February 23 and March 23, 2010

Register Now

Are you prepared for this year's tax filing deadline? Did you know that tax-exempt organizations could have their status revoked for not filing the annual Form 990? The National Council of Nonprofits will host two free webinars presented by the IRS for nonprofit organizations to learn about the resources available and answer questions about filing your IRS Form 990.

These webinars will include:

• Critical steps to take now in order to protect and preserve your tax exemption.
• Review of the filing requirements for nonprofit, tax-exempt organizations, and the consequences of not filing (or filing an incomplete) Form 990-series return. Tax-exempt organizations now stand to lose their tax-exempt status if they do not file the Form 990, 990-EZ, or 990-N (e-postcard) for three consecutive years-these revocations will begin in 2010).

"Learn from the Experts: What Forms Must Nonprofit, Tax-Exempt Organizations File to Meet IRS Requirements and Preserve Tax Exempt Status?"

Tuesday, February 23
3:30 pm - 4:30 pm Eastern

• What forms are tax-exempt organizations required to file with the IRS annually?
• What information is required to be reported on the forms?
• Why your organization may need to file NOW, so that it won't lose its tax-exempt status
• How to file complete, accurate returns to avoid IRS penalties.

There is no charge for nonprofit organizations or their board members for these webinars. Advance registration is required by February 22, 2010.


"Hear from the IRS: What The IRS Has Learned After One Year With the Redesigned Form 990"

Tuesday, March 23
3:30 pm - 4:30pm Eastern

• What trends has the IRS observed in the first season of redesigned Form 990 filing?
• What mistakes are most commonly being made by nonprofits on the redesigned Form 990?
• What can a nonprofit do to streamline the filing process?
• What are the answers to frequently asked questions about completing the 990?

There is no charge for nonprofit organizations or their board members for these webinars. Advance registration is required by March 22, 2010.