May 17th deadline looms for non-profits to file returns
May 11, 2010 (San Diego) Congressman Bob Filner (D-San Diego) advises charities in San Diego and Imperial Counties that they could be threatened by a rule requiring organizations to file a yearly return with the Internal Revenue Service (IRS) to keep their non-profit status. Organizations that go three years without filing an annual return will automatically lose tax-exempt status.
East County Magazine found that 1,525 nonprofits in San Diego County are listed as “at risk” of losing their tax-exempt status, including many in East County. The list includes youth sports booster clubs, service clubs, faith-based organizations, groups helping seniors or the disabled, and even such stalwart long-time organizations as a local Daughters of the American Revolution chapter. To view those at risk in our area, see: http://nccsdataweb.urban.org/PubApps/990search.php.
“Charities do so much for other people they sometimes get caught up in serving the community and fall behind on paperwork. I want to make sure they can keep their tax-exempt status and keep serving people,” said Filner. “Many of these charities are the backbones of our communities, and we can’t afford to lose them.”
The deadline is Monday, May 17, for these organizations to file the required forms. The National Center for Charitable Statistics has created a website to search what organizations could be threatened nationwide: http://nccsdataweb.urban.org/PubApps/statePicker.php?prog=epostcard&disp....
The Pension Protection Act of 2006 requires most tax-exempt organizations, other than churches or other houses of worship, to file a yearly return or notice with the IRS. An organization that has not filed an annual return in the past three years, even those with gross receipts normally under $25,000, could automatically loses tax-exempt status.
Loss of exempt status means an organization must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations. Organizations would then have to file all over again for recognition as tax-exempt with the IRS.
For more information, the IRS website has further details http://www.irs.gov/charities/article/0,,id=217087,00.html.