The IRS announced that approximately 275,000 nonprofits nationwide had their tax exempt status revoked because they failed to file their 990 form for three consecutive years. In North Carolina there are about 6, 300 nonprofits with their tax exempt status now revoked.
Many of these organizations are likely defunct or have revenue of less than $50,000. None filed their IRS 990 tax form for three consecutive yearsas required by law beginning in 2007.
For nonprofits who are operating and did not file as required, the IRS issued guidelines on how to seek reinstatement of their tax exempt status. Nonprofits must file before December 31, 2012 to establish “reasonable cause for its filing failures” to eligible for reinstatement of their tax exempt status.
The IRS will post an ongoing list of revoked nonprofits that do not file their 990 forms for three consecutive years. Nonprofits on the IRS revocation list are no longer eligible to receive tax-deductible contributions with donations creating potential taxable income to the nonprofit. Donors giving to nonprofits on the IRS list may not receive a charitable contribution deduction and may not rely upon the determination letter to substantiate their donation.