Local Non-profit Organizations Lose Tax-exempt Status

The Internal Revenue Service has just released a list on its website of non-profit organizations from around the country that have had their tax-exempt status revoked.

Thirteen organizations with Greendale addresses are on the "Automatic Revocation of Exemption" list.

The IRS website states that the revocations occurred due to failure by the organziations to file an annual information return or notice for three consecutive  years.  The requirement is part of the Pension Protection Act passed by Congress in 2006.

All of the revocations affecting the Greendale organizations took effect in 2010, but the IRS published the list on June 9 of this year. The list does not state whether or not the organizations are still active. According to the list, they include:

• Greendale Jaycees
• Voice of Hope, Inc.
• Guthrie Pride, Inc.
• Wisconsin Park and Recreation Assoc.
• Association of Direct Marketing
• Hatrack Storytellers, Inc.
• Greendale Promotion Commitee, Inc.
• Self Reliance Foundation
• Lithuanian Alliance of America
• Southwest Suburban Community
• WI Citizens United to Rehabilitate
• Lake Highlands Homes Association
• Edgerton Highlands Homes Association 

There are over 33,000 organizations nationwide listed on the "Automatic Revocation of Exemption List. However, the IRS believes "the vast majority of the newly revoked groups are no longer in existence and need to be removed from the tax-exempt listing as the 2006 law requires.

The IRS website indicates that organizations which lose their tax-exempt status through automatic revocation may now be required to file a federal income tax 1120 or 1041 return and pay any applicable taxes. A section 501(c)(3) organization which loses its tax-exempt status becomes ineligible to receive tax-deductible contributions.

Organizations must file an application to have their tax-exempt status reinstated.