Congress passed the law that changed the rules so now all nonprofits must file a 990 form with the Internal Revenue Service. For many small nonprofits with annual revenue below $25,000, that means filing an electronic version of IRS form 990-N (also known as the ePostcard) by October 15. Larger organizations must file form 990 or 990-EZ.
23,898 Texas nonprofits are at serious risk of having their 501 (c)(3) status revoked if they do no file IRS 990 forms by October 15, 2010.
This would eliminate their donors ability to receive Federal tax deductions for contributions to their organizations. To regain their Federal tax exempt status, they will need to reapply - a lengthy process with no guarantee that they will still be eligible for the 501 (c)(3) status, given possible changes since they were first granted such status.
List of Texas nonprofits in danger of automatic revocation of 501 (c)(3) tax status (from IRS website) - Excel Note:
this is a very large files
“Texas Association of Nonprofit Organizations recommends that nonprofits double check their filing requirements" says Barry Silverberg, TANO President/CEO. “It would be an expensive oversight, not to mention all of the time it would require, to reinstate their tax status.
"We encourages all nonprofit organizations in Texas, and especially smaller nonprofits with annual revenue under $25,000, to take simple, immediate steps to ensure they do not lose their tax-exempt status".