Small nonprofits at risk of losing tax-exempt status: Change in federal law could affect 325,000 organizations

The Chicago Tribune reports:

Before 2006, nonprofits with annual income of less than $25,000 didn't have to file returns. But the Pension Protection Act, which went into effect the following year, changed the rules, making this year the do-or-die deadline. The IRS gave organizations three years to comply, requiring them to file returns for 2007, 2008 and 2009.

Across Illinois, roughly 15,000 nonprofits should have already lost their status, but the IRS issued a reprieve in July, granting them a one-time extension until Oct. 15. Officials warn the next wave of endangered nonprofits shouldn't count on extra time.