Is Your Client One of 275,000 Societies That Recently Lost Its Tax-Exempt Status?

Is Your Client One of 275,000 Societies That Recently Lost Its Tax-Exempt Status?

By: Jennifer Wolff Jones

When the IRS revoked tax exemptions for more than a quarter million nonprofits in June 2011, it caught many of those organizations by surprise. Some of them might even be your AMC clients. Here is some advice on how to help those clients navigate their way back toward tax-exempt status.

According to the Internal Revenue Service's (IRS) website, Congress passed the Pension Protection Act (PPA) in 2006, requiring most tax-exempt organizations to file an annual information return with the IRS. On June 9, 2011, the IRS announced that, in accordance with Section 6033(j) of the Internal Revenue Code, it automatically revoked the tax-exempt status of approximately 275,000 organizations because the societies did not file their required returns or notices for three consecutive years. Is your client one of them? ...