Not-For-Profit News: Automatic Revocation List
Friday, June 10th, 2011The IRS has published the first Automatic Revocation of Exemption List. It lists approximately 275,000 nonprofits nationally, a little more than 850 in the state of Delaware, who failed to file an annual information return or notice with the IRS and have now had their tax-exempt status revoked. The IRS will update the Automatic Revocation of Exemption List monthly.
Revocations are mandatory under the Pension Protection Act of 2006. The act requires the IRS to revoke the tax exemption of any nonprofit that is required to file an annual return (Form 990, 990-N, 990-EZ, or 990-PF) but has failed to do so for three consecutive years.
If your nonprofit organization is listed, you can longer accept tax-deductible contributions and must now must file a federal income tax return and pay federal income taxes.
You can review the list here: IRS Automatic Revocation List
If your organization is on the list and you need help understanding the implications, please contact us at info@gunnip.com or 302.225.5000.