Nonprofits and Tax Exempt Organizations

Although tax-exempt organizations do not pay federal income taxes, they are required to file annual informational returns with the IRS.   Small tax-exempt organizations (those whose gross receipts are normally $25,000 or less) were formerly exempt from the filing requirements. However, the Pension Protection Act of 2006 imposed a new filing requirement on these smaller organizations to ensure that the IRS and potential donors have current information about them. These new requirements took effect for tax years beginning in 2007. The … Continued