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Charities appear on IRS ‘hit list’

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in Small Business Tax,Small Business Tax Deduction Strategies

The IRS has released an updated list of 275,000 organizations that have lost their tax exemption because they haven’t filed tax returns for at least three years. (IRS Internal News Release 2011-63) It believes that most of the organizations are now defunct. Nevertheless, the IRS has provided procedures allowing these charities to obtain reinstatement, including a discounted $100 filing fee for small groups with annual receipts of $50,000 or less.

The updated list of dropouts can be found at www.irs.gov/charities.

Note: Revocation of tax-exempt status doesn’t affect deductions to the organization claimed by taxpayers in the past. But future gifts to charities on the list won’t qualify for deductions.

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