Update on IRS Tax Exemption Revocations

It’s been almost two months since most tax-exempt organizations were required to file their annual IRS Form 990.  As we have discussed at great length on these pages, the due date for tax year 2009 was the doomsday date for many nonprofits which had not filed Form 990 for three consecutive years.  Now the numbers appear to be rolling in…

According to today’s Chronicle of Philanthropy, nearly 300,000 nonprofits are in danger of losing their tax exemptions.  Approximately 196,000 have officially missed their filing deadline and another 96,500 have deadlines between now and April 2011.

Interestingly, it seems many of these organizations may not even exist anymore.  When the Chronicle attempted to contact 100 such nonprofits, only 25 were found to still be operating.  Of those, most had no idea about the rule changes.

To read the full article, go here.