BATON ROUGE – Thousands of small Louisiana nonprofit organizations face automatic revocation of their tax-exempt status if they fail to file overdue federal income tax returns before October 15, 2010.
The Internal Revenue Service (IRS) has initiated a one-time relief program under which more than 5,000 Louisiana nonprofits can preserve their tax-exempt status by filing late federal returns that were due in 2007, 2008, and 2009.
“We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption,” said IRS Commissioner Doug Shulman. “So if you do not have your filings up to date, now’s the time to take action and get back on track.”
Louisiana-based nonprofits that lose their federal tax-exempt status will also lose their tax-exempt status under Louisiana’s tax code. They will have to reapply with the IRS to regain their tax-exempt status, and any income received between the revocation date and the renewed exemption may be taxable.
The IRS has set up a special webpage to guide organizations through the process of preserving their status as tax-exempt nonprofits.
The full IRS list of Louisiana organizations at risk of losing their tax-exempt status is available at IRS.gov.