IRS: Non-Profit Groups Risk Loss Of Favorable Tax Status

From Potter County Today

Potter County Department of Emergency Services Director John Hetrick has issued an alert to area fire and ambulance organizations and other non-profit groups about the potential to lose their tax-exempt status unless they take action. New Internal Revenue Service requirements mandate annual reports to the IRS for organizations that have gross receipts of less than $25,000 a year. Many of the affected organizations are not aware of the Oct. 15 deadline.

Passed by Congress, the Pension Protection Act permits the IRS to revoke the status of non-profit organizations with less than $25,000 in gross receipts if they fail to file required Form 990 for three consecutive years. IRS statistics shows that 12,626 organizations are at risk in Pennsylvania. The IRS initially set a deadline for organizations to meet the new filing requirements in May and then extended it to October for organizations that missed the first deadline.

“It’s very simple; an organization has to answer four questions online,” said Jennifer Ross, Pennsylvania Association of Non-profit Organizations spokeswoman. She said organizations that have their status revoked by the IRS will have to pay an $850 fee to file a new application.

Article courtesy of the Potter County Commissioners.