The Internal Revenue Service continues to urge thousands of 501(c)(3) charitable organizations that missed last month’s tax deadline to file their paperwork as soon as possible.
A 2006 law – which went into effect in 2007 – required all smaller nonprofits except churches to file tax returns, even though they are exempt from paying taxes.
Nonprofits that failed to file for three years could lose their tax-exempt status, making 2010 a deadline for many charitable organizations to file for the first time.
The IRS says that filing the tax information is much easier than many organizations may fear. The agency says it will soon offer “additional guidance” to nonprofits who missed the deadline.
The Associated Press says more than 600,000 notices were sent out to many business types – informing them of the deadline, but it is unclear exactly how many nonprofits didn’t file.
Last week the Urban Institute’s National Center for Charitable Statistics estimated that 214,000 nonprofits had missed the deadline.