The IRS Kicked Butt and is Listing Names – 12,891 Texas Non-Profits lose their IRS tax-exempt status

by Mr. Tracy A. Pounders, Attorney and Counselor at Law

The Pounders Law Firm: Lawyers Growing Dallas & Collin BusinessesWhen the IRS told tax-exempt organizations that they needed to start filing their Form 990s or risk losing their tax exempt status, they really meant it!  Too many Texas ta-exempt organizations didn’t take the IRS’ warning seriously enough.  And 12,891 Texas tax-exempt organizations are not tax-exempt anymore.

Prior to 2006 tax exempt organizations that made less than $25,000 in gross revenue did not have to file a Form 990 tax return with the IRS.  Since 2007 tax-exempt organizations were required to file a Form 990 tax return with the IRS, no matter how much revenue they had.  For tax-exempts with revenue under $25,000 per year, an easy to fill out “post card” return, Form 990-N, was created.

Since 2007 the IRS has told tax-exempt organizations that if they failed to file their Form 990s three years in a row they would lose their tax-exempt status.  And the IRS bent over backwards, for the IRS, to help tax-exempts in 2010 by giving them the opportunity to catch up their 990 filings through an amnesty program.  I assisted several non-profit organizations to take advantage of that amnesty program.

But for those tax-exempts that failed to file their 990s for three years in a row – they are tax-exempt no longer.  And the IRS is telling the world!  For a list of the organizations that lost their tax-exempt status see http://www.irs.gov/charities/article/0,,id=240099,00.html.  Hopefully your organization is not on this list.  But if it is, I can help you get reinstated – just give me a call and we’ll get the process started.

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