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Thousands of organizations like charities, sports associations, and alumni groups across the state are tax exempt. However, if they don’t fill out the right forms, they could find themselves having to pay taxes next April. KSMU’s Adam Hammons has more.
Usually, April 15th is the only important tax date of the year. This year, many people will have to remember a 15th in another month: October.
According to the IRS, most tax-exempt organizations must file a yearly return or notice with the IRS. If an organization does not file as it’s supposed to for three consecutive years, then that organization automatically loses its tax-exempt status. That law was new in 2006, and the IRS says because of that law, many organizations are just now facing an October 15 deadline of losing their status as tax-exempt.
Once an organization loses its exempt status, it has to file income tax returns and pay income tax, and its contributors cannot make tax-deductible donations.
Lois Lerner is the IRS Director of Exempt Organizations based in Washington, D.C. She says it’s easy for non-profits and charities to re-instate their status. All the information and instructions for individual organizations are online, she says, at www.irs.gov.
Once on that website, click on the “Charities and Non-Profits” link near the top.
“Right there it will tell you how to file your 990N, is what we call it, the postcard. It’s got eight questions, it’s fast, it’s easy, it doesn’t take any time to do it, and it will save their tax exemption.”
The original deadline was in May. However the IRS says it has decided to extend the due date.“We recognized how important these organizations are to their community so the IRS has extended the due date to October 15th. But if they have not filed by the 15th, they will automatically be revoked of their tax exempt status.”
To see a list of which organizations in Missouri are at risk of losing their tax-exempt status, you can also visit www.irs.gov, or click on the direct link from our website.
For KSMU News, I’m Adam Hammons.
LINKS:
Click here for a list of Charities and Non-Profits At Risk of Losing Tax Exempt Status
