(AP) – Nearly 4,000 organizations statewide have lost their tax-exempt status after failing to file the proper paperwork with the Internal Revenue Service.
The Topeka Capital-Journal reported that effective in 2007, tax-exempt organizations other than churches and church-related organizations had to file an annual return on Form 990. Failing to file for three consecutive years leads to the automatic revocation of federal tax-exempt status.
Last year was the first time organizations began to be purged from the tax-exempt rolls. Many of those groups immediately began a reapplication process and got their status restored for as little as a $100 reapplication fee.
The problem cropped up again this year. Organizations whose tax-exempt status was revoked in 2011 include 71 Lions chapters and 32 PTA groups.