Nearly 24,000 Texas employers are at risk of losing their tax-exempt status because they have not filed required returns in the last three years with the Internal Revenue Service (IRS), the Texas Workforce Commission (TWC) said today. Oct. 15 is the deadline for small nonprofit organizations with 501 (c) (3) status to comply with the law under the one-time relief program the IRS announced in July.

“Nonprofit organizations have to be proactive in providing this information to the IRS, and TWC wants to remind those employers who are exempt from federal taxes to meet this important deadline,” said TWC Chairman Tom Pauken.

These small nonprofits could be liable for filing and paying Unemployment Insurance taxes for the first time if they fail to meet Friday’s deadline. The IRS has posted information about how to remain in compliance on its website at Small tax-exempt organizations with annual receipts of $25,000 or less are required to supply the eight information items on Form 990-N and electronically file it by Oct. 15.

The IRS has posted the names and last-known addresses of these at-risk organizations at To regain federal tax-exempt status, employers would need to reapply to be eligible for the 501 (c) (3) status.
Among the organizations that could lose their tax-exempt status are local sports associations and community support groups, volunteer fire and ambulance associations and their auxiliaries, social clubs, educational societies, veterans groups, church-affiliated groups, groups designed to assist those with special needs and others.

The Texas Workforce Commission is a state agency dedicated to helping Texas employers, workers and communities prosper economically. For details on TWC and the services it offers in coordination with its network of local workforce development boards, call (512) 463-8556 or visit

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