Small local non-profits lose their tax-exempt status May 17
Monday, May 17, 2010
According to the blog Washington Independent, thousands of small non-profits might lose their tax-exempt status today, for lack of updated filings.
"Back in 2006, the Pension Protection Act instituted a new requirement: that all non-profits need to file a 990-N annual return with the Internal Revenue Service in order to retain their tax-exempt status. Before then, non-profits with annual revenues less than $25,000 did not need to file papers.
Small, non-religious non-profits that have not filed a tax exemption since 2007 lose their status today. And the Urban Institute estimates there might be up to 365,000 of them. Those organizations will need to file papers, pay a fine and possibly pay back taxes. The Urban Institute has created an online map where people can input their zip codes to see charities in their neighborhoods that might be impacted. The think tank and other groups, such as National Council of Nonprofits, are urging non-profits to file today. The IRS has indicated it might provide some lenience, but expects non-profits to comply with the new law."
Shoreline City Council Member Chris Roberts used the site to pull the names of Seattle and Shoreline groups in this status. Some of the groups may have dissolved or fulfilled their purpose and are content to let their filing lapse.
Others will be shocked. The office of Congressional Representative Jay Inslee has offered to help any group maintain their tax-exempt status. Contact Patrick Hogan in Rep. Inslee's office if your group needs assistance.
Here is a list of the groups which filed with a Shoreline or LFP address. Their status expired on December 31, 2009 and the grace period ends May 17, 2010. The site provides a link to refile but it takes a long time to load. This may not be a complete list; residents may be affiliated with Seattle groups, which are not listed here.
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