IRS Plans Monthly Updates of Tax-Exempt Roster
June 14, 2011 | Read Time: 1 minute
The Internal Revenue Service—which last week announced that 275,000 nonprofits had lost their tax-exempt status after failing to file legally required documents for three consecutive years—isn’t done trimming its list of officially registered nonprofits.
Moving forward, the tax agency plans every month to release the names of groups that fail to file their paperwork. Organizations that do not file for three years will be placed on the list, which will be separate from IRS announcements about nonprofits that have lost their tax-exempt status for other reasons.
The monthly lists won’t be nearly as large as this month’s massive release, which was the result of a 2006 law designed to help the IRS remove defunct organizations from its database of registered tax-exempt groups.
Ms. Lerner says she expects the monthly lists sometimes to include thousands of groups and sometimes just hundreds.