The effects of a 2006 rule change have recently been made public as the Internal Revenue Service released a list of nonprofits that lost their tax-exempt status in 2010.
Nine nonprofit groups in Darien had their tax-exempt status automatically revoked on May 15, 2010, for failing to file an annual return or notice with the IRS during three consecutive years, according to the list published June 8. About 275,000 organizations nationally lost tax-exempt status.
Those groups may no longer receive tax-deductible donations, according to the IRS website.
But according to IRS spokesman Michael Devine, in many cases those groups would no longer be accepting donations anyway—they’re probably defunct.
“We believe that the great majority of organizations who had their tax-exempt status revoked are no longer in operation,” he said.
Glenn Gabanski, a former officer of the Chicagoland Bird Observatory, which appears on the list, said the group has disbanded. Prior to its dissolution, he said the person who was supposed to file the paperwork let it lapse.
Patch was unable to locate working phone numbers for the majority of the Darien nonprofits on the list. Several others did not respond to a request for comment.
The automatic revocation stems out of the 2006 Pension Protection Act, which requires most nonprofits to file returns or notices annually. Prior to 2006, many nonprofits weren’t required to file the documents if they took in less than $25,000 in tax-deductible contributions per year.
Devine said the agency sent out more than 1 million notices to inform nonprofits about the new rule.
“We go to great lengths to ensure they knew of the law that changed in 2006,” he said.
The just-published IRS list is intended to inform donors that the organizations are no longer eligible to receive tax-deductible contributions, according to the agency’s website.
If a nonprofit is still functioning, however, Devine said it’s possible for them to regain tax-exempt status.
“The best thing they can do is to contact the IRS,” he said. The group can then reapply for tax-exempt status, he said.
It can request the status be reinstated retroactively to the date of the application, or even the date of the revocation, depending on the reasons they give for failing to file the documents.
The nonprofits in Darien that lost their tax-exempt status in 2010 are:
- Abra Association of the Midewest
- Beverage American Employee Benefit
- Buddhas Light International
- Chicagoland Bird Observatory Inc.
- Eagles Football Club
- Harmony Club of Chicago
- Journey Home Ministries Inc.
- Not Forgotten Inc.
- Order of AHEPA