WASHINGTON, May 16 (UPI) -- More than 200,000 U.S. non-profit groups face a midnight Monday deadline to file with the Internal Revenue Service or lose tax-exempt status, officials say.
A new law covering small non-profits that take in less than $25,000 a year requires them to file tax forms annually, The Washington Post reported Sunday. The IRS says many of the 600,000 groups affected by the change in the federal tax law have already complied, but the Urban Institute estimates 214,000 non-profits are in danger of missing the deadline.
"I'm hoping that most of the organizations that fall off the list are no longer out there," said Lois Lerner, IRS director of exempt organizations, told the Post.
The Urban Institute estimates another 126,000 non-profits, ranging from alumni groups to community theaters, could lose their tax-exempt status by year's end. Organizations that lose their tax exempt status can apply for reinstatement, a long process requiring an $850 filing fee.
