IRS Extends Deadline: Local Groups Could Lose Nonproft Status

August 2, 2010

The IRS has extended a paperwork deadline for dozens of North Escambia charities in danger of losing their tax exemption status, and the Better Business Bureau is offering some helpful advice for the nonprofits.

The local groups — like two local chambers, fire departments, community centers and social organizations — were among 325,000 named by the Internal Revenue Service that failed to comply with paperwork requirements, risking their nonprofit status. The IRS has extended the filing deadline for the groups to October 15.

To see a list of North Escambia area organizations on the IRS list, click here.

The IRS will automatically revoke the tax-exempt status of charities that do not file a return by October 15 and will publish a list of those organizations in early 2011. Donors who make a donation to those revoked organizations after the list is published may not deduct those contributions on their tax returns, according to information released by the Northwest Florida chapter of the Better Business Bureau.

“I suspect that many of the charities on this list are those that were not required to file a return prior to a change in the law in 2007,” said Norman Wright, president and CEO of the BBB serving Northwest Florida. “However, the IRS has been sending multiple notices to these organizations because this is such a big threat to the smallest charities in our service area.”

In conducting its Charity Review Program, BBB verifies charities are indeed tax-exempt as well as registered to solicit in the state of Florida. The Better Business Bureau offers helpful information for charities at bbb.org/charity.

In addition, groups that do not meet the October 15 deadline will be required to pay taxes like another business, according to the IRS.

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Written by William Reynolds · Filed Under News