Not-for-profit’s Failure to File Required Information Returns Can Lead to Automatic Revocation of Tax Exempt Status

  • June 1, 2010

Tax laws provide that not-for-profit entities who fail to file required applicable 990 information returns for three consecutive years automatically lose their not-for-profit status. Entities whose tax exempt status has been revoked are subject to regular income tax on their income and donations to the entities will not be deductible as charitable contributions.