Knowledgebase

Why is the total number of tax-exempt organizations reported in the IRS Data Book different from the number reported in the Business Master File?

The numbers reported by the IRS include organizations that are probably defunct but have not notified the IRS. The IRS removes them from the public version of the Business Master File but continues to count them in its Data Book since the organizations have not formally notified the IRS of their status. (The 2007 IRS numbers are available at http://www.irs.gov/pub/irs-soi/07db25eo.xls.)

The "epostcard" project, mandated by the Pension Protection Act of 2006, will require organizations like these, which are not filing Form 990s and are not in contact with the IRS, to complete a web page in order to certify that they are still in existence. The NCCS is currently working with the IRS to develop this system.

KEYWORDS: DEFUNCT, DECEASED, DEAD ORGANIZATIONS, NONFILER, POSTCARD, POST CARD, EPOSTCARD, IRS DATA BOOK