NEW DELHI, MAY 19, 2010: MORE than 200,000 non profit organizations in the US may lose their tax exempt status if they have not filed a new 990-N form with the Internal Revenue Service that seeks to weed out the defunct organizations and ensure transparency.
Form 990-N returns are required to be filed by most tax-exempt organizations that report US$ 25,000 or less in income, except for church and government-affiliated organizations. It is the primary tool for the IRS to gather information about tax-exempt organizations.
The Urban Institute's National Center for Charitable Statistics, which conducts economic and social policy research, estimated that about 214,000 nonprofit organizations haven't filed the form as required.
Organisations that have not filed the form may lose their tax-exempt status. This means they would no longer be eligible to receive tax-deductible donations and are not likely to be awarded grants.
The IRS has sent out press releases and letters to more than 500,000 nonprofit organisations to get the word out about the 990-N forms.
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