(Sacramento Business Journal) Following last week’s news that 275,000 nonprofits lost their tax-exempt status because they failed to file the necessary paperwork, the IRS announced that it will assist nonprofits in once again gaining 501(c)(3) status. In 2006, the IRS issued a regulation mandating that nonprofits had to file annual reports each year—and those organizations which failed to do so would lose their tax exempt status.
While many of those 275,000 organizations are now defunct, some smaller nonprofits who had not taken notice of the 2006 regulations will now need to re-apply for tax-exempt status. Nonprofits wishing to enter the IRS’s program must fill out an application and pay a fee of between $100 and $850, depending on the amount of the organization’s annual gross receipts. Applications for tax-exempt status will be followed by an IRS determination letter, and re-granting the organization’s status may be applied retroactively.
The list of organizations that lost tax-exempt status is available on www.IRS.gov.