IRS Announces Loss Of Non-Profit Status By Groups That Failed To File For 3 Years

The Internal Revenue Service announced yesterday that some 275,000 non-profit organizations have automatically lost their tax-exempt status because they failed to file their annual return (Form 990 or 990-N) for three consecutive years. Most of the organizations affected likely no longer exist. Churches, various church organizations, church-affiliated elementary and high schools and religious activities of religious orders are not affected since they are exempt from annual IRS filings. (IRS background). However other types of religious organizations are among those that have been affected. The IRS has posted a list of all the organizations which have lost their exemptions and has posted an FAQ document explaining how to restore tax exempt status.