The Internal Revenue Service (IRS) has made changes to the nonprofit tax exempt status of agencies that are not for profit in the 445 area who have not filed required tax forms for three consecutive years now. This move has made it impossible for donors to claim deductions on their federal income taxes 2010 for donations given to these organizations.
About 275,000 local agencies all over the country have been affected by this IRS policy move, though according to the federal agency most of these agencies are not operating. A list of the affected agencies is available on the revoked list at Representative Chuck Shumer’s website. However some of the agencies listed are operating and according to them, they have been filing all the paperwork required. So work needs to be done to clarify who is tax exempt and how has lost their tax exempt status.
Among these agencies include the Plattekill Public Library, New Windsor Little League, University of Michigan, Woodstock Area Meals, George Washington University and the Islamic Center in Washington D.C. According to these agencies, they have been filing their returns and their tax forms are up to date. They were all surprised when they found themselves on the list.
Why the List is Necessary
The 2006 Pension Protection Act claims that these organizations earning less than $50,000 should file their tax information. Cleaning up the list will increase tax revenues during a time when the US government is in need of increased revenue to help balance spending.
Assisting Potential Donors
The revocation is supposed to eliminate agencies not in operation. Donors can have a clear picture of existing agencies. The IRS had made attempts to reach out to all agencies but most of the organizations claimed that they did not get any information. What is puzzling for organizations is that copies of tax forms can be found on the Guide Star website filed in 2009.