Tax-exempt organizations, like franchisee trade associations,  that do not satisfy annual filing requirements for three consecutive years automatically lose their tax-exempt status.

The IRS is provided one-time relief for such organizations that have filing due dates on or after May 17 and before October 15, 2010. The list includes organizations for which the IRS does not have a record of a required annual filing for 2007 and 2008, and whose 2009 return, due on or after May 17 and before October 15, 2010, has not yet been received.

But that one time relief has ended and your association may be at risk,

Organizations should check their records and determine whether they are at risk of automatic revocation because they have not satisfied annual filing requirements. 

 

The U.S. Internal Revenue Service (IRS) is preparing to publish the Nonfiler Revocation List. This initial  publication may include as many as 321,000 nonprofits whose tax-exempt status has been revoked for failure to file an annual information return. 
 

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