Md. nonprofits' tax-exempt status at risk

More than 4,000 Maryland nonprofits face losing their tax-exempt status because they failed to file their financial information during the last three consecutive years, the Gazette reports.

The Internal Revenue Service used to guarantee lifelong tax exemptions to most nonprofits, but under new 2006 regulations, the IRS will now revoke exemptions for any organizations that have failed to file the proper paperwork for three years in a row. Religious and state institutions are exempt. GuideStar, a Virginia organization that tracks nonprofit finances, released a study showing that nationwide, 355,000 nonprofits are at risk of losing their tax-exempt status.

The first filing deadline that would have triggered loss of tax-exempt status was in May, but officers have since extended the deadline through October.

To read more about this story, go to the Gazette.