Nearly 8,400 Washington-area nonprofits lost their tax exempt status this year because they failed to file necessary annual returns. Nationwide, the figure topped 275,000. The revocations are part of the IRS’s renewed commitment to ensuring nonprofits comply with the rules and regulations that govern their valuable tax exempt status.
Even if Washington-area nonprofits escaped this round, there are many other ways nonprofits can come under IRS scrutiny. Potential pitfalls nonprofits should avoid include engaging in excess benefit transactions, lobbying, and deviation from exempt purpose/excessive unrelated business income. Click here
to read Chris Rauch’s full article which takes a deeper look into what nonprofits need to know to stay tax-exempt.