Charities risk losing tax exemption

TERRE HAUTE, Ind. (WTHI) - Hundreds of Wabash Valley charities may be forced to pay taxes.

The IRS recently released a list of not-for-profit organizations that could lose their tax exempt status on October 15.

Almost 7,000 charities and not-for-profits are at risk in Indiana alone.

Hundreds of those are right here in the Wabash Valley. Groups from churches to fire departments could lose their tax exempt status.

In 2006, the IRS began requiring smaller charities to turn in a new form called the 990 N. That form helps the IRS account for the smaller charitable organizations.

The problem is, many of those charities didn't know or simply forgot to send in the form.

The rules state if charities do not submit the form in 3 years, they will lose their not-for-profit status.

News 10 spoke with an IRS representative earlier this afternoon. They want to make it clear that most of these charities have done nothing wrong.

They can easily get off the list simply by sending in the 990 N form.

You can find out if your group or charity is on the list by going to the IRS website, or by clicking here.