Some Nonprofits Risk Losing Their Tax Exempt Status

Nonprofit organizations in Brown County and across the country are in danger of losing their tax exempt status because they have not filed the necessary paperwork to maintain their status.

The IRS has released a list of all of the nonprofit organizations that are in danger of losing their tax exempt status.  Over 23,000 organizations are on the list from Texas with 43 being in Brown County including several volunteer fire departments.

Tax-exempt organizations that do not satisfy annual filing requirements for three consecutive years automatically lose their tax-exempt status. The IRS is providing one-time relief for such organizations that have filing due dates on or after May 17 and before October 15, 2010. The list includes organizations for which the IRS does not have a record of a required annual filing for 2007 and 2008, and whose 2009 return, due on or after May 17 and before October 15, 2010, has not yet been received.

Nonprofits that lose their tax-exempt status may be liable for taxes on certain income, and those who donate to the groups could face penalties if the IRS finds they have donated to an organization that is not tax-exempt.

The list, which was generated on June 30, 2010, includes only organizations with an annual filing requirement. Certain exempt organizations are exempt from this requirement.

CLICK HERE for more information from the IRS website.   Below is the list of Brown County organizations from the IRS list that could be at risk.