Hundreds of thousands of small non-profits, from Little League teams to community soup kitchens, could lose their tax-exempt status today because of an IRS filing requirement. In the Lansing area the list includes 4-H, quilting groups, firefighter associations and even the Boy Scouts.
The 2006 Pension Protection Act included a provision requiring all non-profits to file an annual return with the IRS.
Previously, non-profits with annual revenue of less than $25,000 were excluded. Non-profits that fail to file a return for three consecutive years lose their tax-exempt status. On May 17, the three-year clock runs out for non-profits that haven't filed a return since 2007. FULL STORY