Many non-profit organizations are not aware that in 2006 legislation changed to require ALL non-profit entities to file tax forms starting in 2007. The Pension Protection Act of 2006 instructs the IRS to revoke tax exemptions of groups failing to file for three consecutive years which will be coming up fast this May 17, 2010. Revocation of non-profit status can be avoided by filing an extension before May 17th (the 15th is on a Saturday).
Previously, only organizations with revenues of $25,000 or more were required to file and many small charities are still functioning under that assumption. While this may represent a hardship for many small entities, it is part of an effort to provide more information to the donor community and tracking of non-profit entities in a more systematic manner. The IRS sent out approximately 665,000 letters to groups falling below the $25,000 threshold to notify them of the change in regulation and seem to be making an effort to help these groups reach compliance. No one involved is eager for a revocation en masse on May 18th!
Organizations with less than $25,000 in revenue can bring themselves into compliance by filing a simple e-postcard with the IRS.
Please keep this deadline in mind for any dormant groups, sub-organizations or affiliates and help get the word out.
Additional information: http://www.nytimes.com/2010/04/23/us/23exempt.html