Thousands of Non-profits Risk Losing Tax-free Status as Deadline Looms


October 15 is the deadline for non-profts in the country with revenues of less than $25,000 a year to fle Form 990-N to the IRS to keep their tax exemption status. The consequences of losing tax exempt status are clear. All forms of income including donations and gifts to the organization will be subject to tax and all contributors of such donations and gifts will not be able to deduct their contributions from their taxable income. All non-proft organizations that have not fled Form 990-N for the last 3 consecutive years will have their tax-free status revoked come October 15.

Once tax exempt status is revoked, an organization would have to re-apply to reinstate the exemption. But this process would take time and incur expenses which many non-profits may not be able to bear. In the meantime, the organizations would have to pay taxes for the period between the time of revocation of exemption to the time of its reinstatement.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Darrin Mish, Tampa Tax Attorney, The Law Offices of Darrin Mish, P.A. | Attorney Advertising

Written by:


The Law Offices of Darrin Mish, P.A. on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.