Sens. Dan Coats, R-Indiana, and Ben Cardin, D-Maryland, introduced legislation Friday requiring the Internal Revenue Service to notify nonprofit organizations before their tax-exempt statuses are automatically revoked.
The NOTICE Act (S.400) also allows the IRS to reinstate tax-exempt status if the nonprofit did not receive the notice and subsequently files an information return, according to a release from Sen. Coats’ office.
Under current federal law, charities and other nonprofits automatically lose tax-exempt status if they do not file annual information returns for three consecutive years.
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