Jay VFD Says IRS Problem Led To Tax Exempt Status Revocation

June 23, 2011

Jay Volunteer Fire Department Chief Tony Simmons was surprised reading the news to find that his department has lost their tax exempt status.

He was working an overnight shift recently and visited NorthEscambia.com about 4 a.m. where he learned that the Jay VFD was on a tax exempt status revocation list issued by the IRS.

“We did not receive a notice, a letter or anything from the IRS,” he said. “I did not know about it until I read it in the news.”

http://www.northescambia.com/wp-content/uploads/2010/07/irsnon.jpgThe Internal Revenue Service  revoked the tax exempt status of over 250 organizations in the North Escambia area because they did not file legally required annual reports for three consecutive years — but that’s not the case for the Jay VFD, Simmons said.

Simmons said that the fire department’s accountant can prove that she filed the necessary paperwork with the IRS.

“Everything was done and filed out and filed on time,” he said. “We called the IRS, and it looks like everything was filed on their end. We are not sure what happened.”

While the fire department and their accountant work to sort out the apparent IRS mistake, the Jay Volunteer Fire Department is not currently tax exempt, according to the IRS.

“The only thing right now that really effects is donations,” the fire chief said, because donations are only exempt when made to a non-profit recognized by the IRS. He said the department’s purchases are made through a state sales tax exemption, meaning the department is not back to paying sales tax.

In the meantime, the department’s accountant is working with the IRS to have their tax exempt status reinstated retroactively to the date it was revoked.

“We are going to get this straightened out,” Simmons said. “We did everything we were suppose to do.”

For a previous NorthEscambia.com story with a complete list of all of the North Escambia area organizations that had their tax exempt status revoked, click here.

Congress passed the Pension Protection Act (PPA) in 2006, requiring most tax-exempt organizations to file an annual information return or notice with the IRS. For small organizations, the law imposed a filing requirement for the first time in 2007.  In addition, the law automatically revokes the tax-exempt status of any organization that does not file required returns or notices for three consecutive years.

Comments

2 Responses to “Jay VFD Says IRS Problem Led To Tax Exempt Status Revocation”

  1. mercyme on June 25th, 2011 12:24 pm

    If you do not get a quick and successful resolution of the tax exempt situation from the IRS, you might want to contact your State Congressional representatives and get them involved. The IRS is a Federal agency and your Congressmen and women can help, if you need them. That’s what they are there for. Good luck with the IRS!

  2. 429SCJ on June 25th, 2011 6:30 am

    I find it interesting that many people scream about the constitution, and yet rarely mention the IRS and her sister the Federal Reserve Corp.? I think I will google Pension Protection Act 2006.