Employers must file form with IRS by Friday to avoid forfeiting status
Texas Insider Report: AUSTIN Texas Nearly 24000 Texas employers are at risk of losing their tax-exempt status because they have not filed required returns in the last three years with the Internal Revenue Service (IRS) the Texas Workforce Commission (TWC) said today. October 15 is the deadline for small nonprofit organizations with 501 (c) (3) status to comply with the law under the one-time relief program the IRS announced in July.
Nonprofit organizations have to be proactive in providing this information to the IRS and TWC wants to remind those employers who are exempt from federal taxes to meet this important deadline" said TWC Chairman Tom Pauken.
These small nonprofits could be liable for filing and paying Unemployment Insurance taxes for the first time if they fail to meet Fridays deadline. The IRS has posted information about how to remain in compliance on its website at IRS.gov. Small tax-exempt organizations with annual receipts of $25000 or less are required to supply the eight information items on Form 990-N and electronically file it by October 15.
The IRS has posted the names and last-known addresses of these at-risk organizations at
www.irs.gov/pub/irs-tege/tx.pdf.
To regain federal tax-exempt status employers would need to reapply to be eligible for the 501 (c) (3) status.
Among the organizations that could lose their tax-exempt status are:
- local sports associations
- community support groups
- volunteer fire and ambulance associations and their auxiliaries
- social clubs
- educational societies
- veterans groups
- church-affiliated groups
- groups designed to assist those with special needs
- and others.
