Some non-profits pushing IRS deadline
September 13, 2010
Several local non-profit organization are in danger of having their tax-exempt status revoked if they fail to file with the IRS by Oct. 15.
According to IRS spokesperson Mark Hanson, the possible revocations are the result of the Pension Protection Act passed by Congress in 2006.
The law made two changes. First, it mandated that all tax-exempt organizations, other than churches and church-related organizations, must file an annual return with the IRS. The Form 990-N was created for small tax-exempt organizations that had not previously had a filing requirement. Previously, organizations which had gross receipts below $25,000 were not required to file.
Second, the law also required that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status. The IRS said it conducted an extensive outreach effort about the new legal requirement but, even so, many organizations have not filed returns on time.
Hanson said the deadline to file was May 15. However, he said, “A lot of organizations missed that May deadline...The period we’re in right now is actually the extension period.”
“The IRS did send out notices to many of theses organizations,” he added.
Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice, and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.
“They need to file by Oct 15,” Hanson reiterated.
There are two consequences for not filing, he explained. First, the organization would have to pay taxes on proceeds.
Secondly, he said, “It could influence donor behavior.”
Without the tax-exempt status, donations would no longer be tax deductible.
The Warren Sports Boosters was on the list. However, the organization’s president indicated that the group is in the clear.
Boosters president Tony Hasselman said, “We became aware of the report a few months ago and all the paperwork has been updated and completed. We are in good standing with the IRS.”
Another local organization, the Gen. J.H. Pendleton Marine Corps League, was aware of the requirement but has yet file, according to group member Burt Alexander.
“We plan to file the required paperwork to retain our tax exempt status,” he said.
The following local organizations were listed by the IRS as being in danger of losing tax exempt status:
Ø Allegheny Trail Riders Inc.
Ø American Federation of State, County and Municipal Employees, Warren County Pa. Local 2446
Ø American Legion, #747 Kinzua-Brant-Bentley, Warren
Ø Warren Garden Club
Ø GTE Employees Association of Warren
Ø Jackson Run Cemetery Association
Ø Jackson Run Television Association
Ø Kinzua Dive Team
Ø League of Women Voters of Pennsylvania, Warren County Chapter
Ø Marine Corps League, #387 Gen. J. H. Pendleton, Warren
Ø Masonic Temple Association of Warren, Pa.
Ø Mental Health Association of Warren County, Pa.
Ø Pennsylvania Nurses Association, District 13, Warren
Ø Pennsylvania Rehabilitation Center Alumni Association, North Warren
Ø Philomel Club of Warren
Ø Riverview Corydon Cemetery
Ø Sons of Italy in America, #1176 Gorizia, Warren
Ø Sonshine International Outreach Ministries Incorporated, Warren
Ø United Ostomy Association, Warren
Ø Warren County Baseball League
Ø Warren County Fair Improvement Society Inc.
Ø Warren County Hotline Inc.
Ø Warren County Jail Ministry
Ø Warren County Unemployed Council Inc.
Ø Warren Festival of the Arts
Ø Warren Sports Boosters Inc.
Ø Westview Cemetery Trust, Warren
Ø Double Rainbow Farm Therapeutic and Recreational Riding Facility Inc.
Ø International Association of Lions Clubs Pine Grove Township
Ø Pine Grove Sportsmans Association
Ø Pine Grove Township Beautification Committee
Ø Russell Volunteer Fire Department
Ø Stilson Hill Cemetery Association Inc.
Ø American Legion, #658 Helgren-Wilcox, Youngsville
Ø Brokenstraw Fish and Game Club
Ø Jody’s Farm Inc., Youngsville
Ø Youngsville Lions Club
Ø New Directions Unlimited, Youngsville
Ø Youngsville Chapter of the Pennsylvania Order of the Eastern Star Inc.
Ø Barnes Cemetery Association Inc., Shffield
Ø Family Motor Coach Association: Just Friends, Sheffield
Ø Sheffield Area Ecumenical Food Pantry
Ø Sheffield Area Revitalization Association
Ø Sheffield Cemetery Association
Ø West Sheffield Water Association
Ø Tidioute Chapter of the National Association of Letter Carriers
Ø Tidioute Cemetery Association
Ø Chandlers Valley Cemetery Association Inc.
Ø National Forge Employees Community Fund
Ø Wild Woods Animal Park, Clarendon