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Thousands of small Maryland nonprofits could lose tax exempt status

More than 6,700 small nonprofits in Maryland could lose their tax-exempt status unless they file tax returns for past few years by Oct. 15, according to the IRS.

It used to be that small nonprofits with $25,000 or less in income didn't have to file a federal return. The Pension Protection Act of 2006 changed that. The agency made a variety of efforts to contact the groups, including sending letters in 2006 and 2007 to the last-known addresses of these organizations, said Jim Dupree, IRS spokesman in Baltimore.

As of the end of July, 321,000 nonprofits across the country had yet to comply, including 6,789 in Maryland.

eileen.ambrose@baltsun.com

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