In the past, 501(c)(3) organizations earning less than $25,000 a year were not required to file with the Internal Revenue Service. That changed in 2006 and small organizations that have not filed for the past three years are in danger of losing their tax-exempt status.
The Pension Protection Act of 2006 requires the IRS to revoke the federal tax exemption of any non-profit organization required to file an annual return that has failed to do so for three consecutive years. Nonprofits that wish to have their exemptions reinstated will be required to reapply to the IRS for tax-exempt status, a process that can take several months and requires a user fee of $400 or $850. The IRS will start issuing the revocation notices in 2011.
The Internal Revenue Service is providing a one-time relief program for small nonprofits and extending the deadline for filing the 990N or 990E-Z (also called the e-postcard) until October 15, 2010. The failure to do so will affect not only the organizations that lose their exemptions but also the donors and funders that support the organizations and the people that rely on their services.
Follow these step by step instructions to see if your organization is on the list:
1. Go to: http://www.irs.gov/charities/article/0,,id=225889,00.html
2. Scroll down the page until you see the list of states
3. Go to Michigan and Click on the PDF (the Excel spreadsheet is quite large and will take up a lot of space on your computer)
4. Search for your organization alphabetically (by your legal name)
5. Contact the IRS directly if you have questions or need information about filing at 1-877-829-5500
The type of experience that a person involved in the activities of a non-profit organization will have depends on the group's focus or interest.
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