SHREVEPORT, LA (KSLA) – Thousands of charities across the nation could lose their tax-exempt status if they don't file a Form 990 with the Internal Revenue Service by midnight on Monday, May 17.
Most tax-exempt organizations, other than churches, must file a yearly return or notice with the IRS.
That's the result of a new law, embedded in the Pension Protection Act of 2006 that took effect in 2007. It directs the IRS to revoke the tax-exempt status of groups that fail to file for three consecutive years. Three years have passed, hence the deadline Monday. The law was designed to ensure the IRS has adequate data to oversee one of the most generous tax breaks the federal government offers.
Without the exempt status, the charities might have to start paying taxes on their revenue, and donations to them would no longer be tax-deductible.
Before the law, nonprofits were not required to file unless they brought in more than $25,000 in revenue.