As I begin a process of getting help to become a non-profit small literary press, I was concerned to find an article about how many small non profits, budgets under $25,000, may lose their status if they fail to file the 990 N form with the IRS this week. I don’t want to get into the political commentary about this, but this seems like an underhanded way to hurt the private sector.
Evidently, three years ago Congress amended the tax code requiring this filing. Further investigation found that if organizations failed to file for three years ending this week, their status is threatened. A glimmer of hope; even further looking revealed a postcard or e-filing that the IRS Commissioner urged groups to file even if it is late, in order to curb the process which could take a long time to correct. This applies to historical societies, libraries, musical groups, theatrical groups, and possibly small presses. What could Congress have been thinking? I don’t know enough, but I think it requires further investigation into the codes and what it means and what might be done about it.
Now that this news is out, albeit last-minute, hopefully losing tax exemption for grants and donations will be avoided by many who are struggling to break even if they file this late card. It seems almost brutal when I think that these are groups bringing cultural enrichment to communities across the country.