5,132 MN Nonprofits Lose Tax-Exempt Status
The Internal Revenue Service (IRS) on Wednesday released a list of 5,132 Minnesota nonprofits whose federal tax-exempt status was revoked after they failed to meet new reporting requirements. Nationwide, 275,000 nonprofits lost their tax-exempt status.
Nonprofits that raise less than $25,000 per year previously were not required to file tax returns. Last year, however, all nonprofits were required to file-or they'd lose their tax-exempt status.
The Minnesota Council of Nonprofits said that bulk of the state's organizations on the list are no longer active, and the council took steps to notify as many active organizations as it could of the October 15 deadline for the new reporting requirements.
“The vast majority of active nonprofits are unaffected,” Jon Pratt, executive director of the council, said in a statement.
According to a report by the Star Tribune, the new rules led to a 14 percent reduction in the total number of nonprofits in Minnesota-previously there were 35,000-and a 17 percent drop in nonprofits from throughout the United States.
If active nonprofits in Minnesota were placed on the IRS revocation list because they failed to file a tax return by the deadline, they can still get their tax-exempt status reinstated. The Minnesota Council of Nonprofits Web site provides advice for how to reapply. (It also includes the list of Minnesota nonprofits whose statuses were revoked.)