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Tax Exempt Status

Thursday, July 7, 2011

Nine Darien Nonprofits Lose Tax-Exempt Status

About 275,000 organizations nationally lost tax-exempt status.

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 …

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