IRS change may make nonprofits pay

Before regulations changed in 2006, nonprofits making less than $25,000 annually didn't have to file annual tax returns. Congress, however, passed legislation mandating almost all tax-exempt organizations except churches file annual forms starting in 2008.

The law also requires a nonprofit failing to file the appropriate forms for three consecutive years to be stripped of its federal tax-exempt status, and 2010 is the first time companies could have three years of noncompliance, according to a statement from IRS Commissioner Doug Shulman.