Small nonprofits that haven't acted to retain their tax-exempt status will want to do so before Oct. 15.
More than 70 Minot nonprofits were on a list released by the Internal Revenue Service Monday of organizations that are in danger of losing their tax exemptions.
The IRS announced that organizations with less than $25,000 in gross receipts have until Oct. 15 to go online and file Form 990-N, the electronic postcard that ensures they won't lose their tax exemption and be forced to file annual returns. Somewhat larger organizations eligible to file 990-EZ also are getting the extension.
The IRS is providing one-time relief for organizations that may have been unaware of a 2006 law that requires them to file annually after the close of their fiscal years. The filing helps the IRS track their existence and enables donors to verify a charity's status. Failure to file for three years results in loss of tax-exempt status. Beginning May 17, the three-year window began closing for organizations.
The IRS is not penalizing nonprofits that file late but before Oct. 15. However, larger organizations that miss the deadline will pay a compliance fee of $100 to $500. Organizations eligible to file the e-postcard aren't subject to a fee.
Area organizations for which the IRS reports that it has no record of filings include cemetery associations, recreational clubs, business women's organizations and veteran's groups. The Minot-area list includes familiar names, including American Legion posts and Souris River Telecommunications Cooperative. Others are less known, such as the Minot Football Association. North Central Fox Producers Association or Truckin' for Jesus. Some are likely no longer active.
John Reiser, assistant manager at SRT, said the cooperative recently informed the IRS that it is listed in error. SRT is a taxable entity. The corporation listed in the IRS record no longer exists, having been merged into the parent organization in 2000, he said.
The IRS list also may include other organizations whose recent filings or error reports haven't shown up on the records yet.
The IRS list of organizations at risk of losing their tax-exempt status can be found online at (www.irs.gov) by following the links from "Charities and NonProfits" at the top of the home page. The list contains the name of the organization and its last-known address.
The IRS warns that the list may be incomplete so all organizations need to make sure that they have filed. The IRS advises local chapters to verify with their parent organizations that they are included in an umbrella filing, even if their names aren't on the list.
If an organization loses its exemption, it must reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.