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Hello!
I am writing a research paper on the following:
Nonprofit organizations (NPOs) are responsible for driving regulatory compliance by integrating established policies, state governments, and engaged stakeholders to increase transparency and effective organizational performance. Small nonprofits are at higher risk of having their IRS revoked due to a lack of funding, governance, and structure. Organizations that fail to file an annual information return or notice for three consecutive years automatically lose their tax-exempt status by revocation and can adversely affect their fundraising and operational success. As of May 2020, the IRS has revoked the status of more than 30,000 nonprofit organizations for failing to file tax returns. The problem is that executives’ perceptions of failed nonprofits’ compliance with federal regulations are unknown. This research aims to determine the perceptions of nonprofit leaders of nonprofits that have had their IRS revoked regarding federal compliance of small nonprofits.
I am at this point looking for help in writing a sort of cost analysis of why we should care about said issue above. So, I’d like a research paper that answers some or all of the following questions:
Why is it important to understand this?
What is the cost to start a nonprofit?
Issues the IRS backlogs are currently facing?
What are the fees associated with regular nonprofit compliance?
What are the costs of revocation?
This one might be hard to answer: but… is there any data on how the IRS being backlogged affects our tax funds?
Below are a couple of good sources but I am also interested in finding articles or other sources that discuss how much starting nonprofit costs both the taxpayers and the IRS.
https://www.irs.gov/newsroom/national-taxpayer-advocate-issues-midyear-report-to-congress-expresses-concern-about-continued-refund-delays-and-poor-taxpayer-service
https://www.irs.gov/charities-non-profits/current-edition-of-exempt-organizations-update
https://www.irs.gov/pub/irs-pdf/f12339.pdf
https://www.irs.gov/charities-non-profits/charitable-organizations/wheres-my-application-for-tax-exempt-status
https://www.irs.gov/charities-non-profits/exempt-organizations-form-1023-ez-approvals