Want to retain your tax-exempt status? More than 200,000 small charities and nonprofits with revenues of $25,000 or less could lose their tax-exempt status next week if they don't file a federal tax form by Monday, May 17th. This requirement goes back to a 2006 law that says nonprofits with revenues of $25,000 or less have to start filing annual tax forms — something they never had to do before. The law also says that if they fail to do so for three years in a row, their tax-exempt status will be immediately revoked.
This form is now required so the IRS can keep track of smaller nonprofits and should not affect their tax status. Many of these organizations are volunteer-run, so it’s not clear how many will be affected.
Luckily, the form is short (eight questions) and can be electronically filed. To find out if you need to file, and to get the form and electronic filing instructions, visit: http://www.irs.gov/charities/article/0,,id=169250,00.html