42 city agencies in danger of losing tax-exempt status

Posted: Tuesday, August 24, 2010

Forty-two nonprofit organizations in the City and Borough of Juneau are in danger of losing their tax-exempt status for failing to file annual paperwork, according to information on the Internal Revenue Service's website.

Those groups, however, can take advantage of an IRS relief program to get their yearly forms caught up, said an IRS spokesman.

The Internal Revenue Service has enacted a relief program for certain nonprofit organizations that are in danger of automatically losing their tax exemption statuses.

Most tax-exempt entities, other than churches, must file annual returns or notices with the IRS. Those that fail to do so for three consecutive years can lose their exemption, said IRS spokesman David Tucker

This one-time relief effort offers these organizations the chance to complete their Forms 990 to retain their exemptions, he said.

"If they do lose their status, they'll have to reapply to be exempt again," Tucker said.

Filings are due by October 15.

As part of the relief program, organizations eligible to file a Form 990 can take part in a voluntary compliance program. Participation requires filing delinquent account information and payment of a compliance fee.

"We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption," said IRS Commissioner Doug Shulman in a press release. "So if you do not have your filings up to date, now's the time to take action and get back on track."

According to a news release by the IRS, this relief effort does not apply to private or some larger organizations that fill out a 990.

The organizations that must file are listed by state on the IRS website at http://tinyurl.com/39hxabx.

According to the website, this list may not be complete. Organizations that do not appear in the list must still file to avoid revocation.

Tucker said that all necessary information can be found on the website. Organizations can seek assistance with determining relief eligibility and filing through the website or by calling the exemption assistance help line at 1-877-829-5500.

The Form 990 was created as part of the Pension Provision Act of 2006 for smaller tax-exempt organizations that had no previous filing requirements. The automatic revocation after three consecutive years of not filing was also part of this act.

• Contact Jonathan Grass at 523-2276 or jonathan.grass@juneauempire.com.

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