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Neal - "Don't let local non-profits lose their tax-exempt status."

May 11, 2010
Press Release

(WASHINGTON) Congressman Richard E. Neal is urging all local charities to file an annual return with the IRS by Monday, May 17, 2010 or risk losing their tax-exempt status. The Pension Protection Act of 2006 stated that most tax-exempt organizations, other than churches or other houses of worship, must file a yearly return or notice with the IRS. If an organization has not filed an annual return in the past three years (even those with gross receipts normally under $25,000), the law provides that it automatically loses its tax exempt status.

Loss of exempt status means an organization must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations. Organizations will have to file all over again for recognition as tax exempt with the IRS. The website link below contains a searchable database of local community non-profits who are at risk of losing their non-profit status NEXT MONDAY, MAY 17, 2010, unless they file the required forms. As you will see, these are hundreds from Hampden, Hampshire, Worcester and Middlesex counties.

Click here to access the searchable database.

“The importance of non-profit organizations in western and central Massachusetts cannot be overstated. Each day, these groups do meaningful work to help the needy, strengthen our communities and improve the quality of life. I am making local charities aware of these changes in the law so they can continue their important function and keep their tax exempt status,” said Congressman Richard E. Neal.


The smallest nonprofits (those with gross receipts normally under $25,000) only need to fill out Form 990-N, also known as the e-Postcard. Completing the e-Postcard requires just the eight items listed below:

1. Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN)

2. Tax year

3. Legal name and mailing address

4. Any other names the organization uses

5. Name and address of a principal officer

6. Web site address if the organization has one

7. Confirmation that the organization’s annual gross receipts are normally $25,000 or less

8. If applicable, a statement that the organization has terminated or is terminating (going out of business)

The IRS has detailed information on who needs to file, as well as Frequently Asked Questions and fact sheets for non-profits in western and central Massachusetts. Links to More Information from the IRS:

More info: https://www.irs.gov/charities/article/0,,id=217087,00.html

Link to FAQ on the issue: https://www.irs.gov/charities/article/0,,id=221600,00.html

The 8 questions: https://www.irs.gov/charities/article/0,,id=218162,00.html

You can also find more information from the National Council of Nonprofits on their homepage at www.councilofnonprofits.org, or find your State Association at www.councilofnonprofits.org/salocator to get more local information.