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Dozens of nonprofit groups in county lose tax-exempt status

Posted 6/24/11

Over 6,000 upstate New York nonprofit groups, including dozens in St. Lawrence County, have automatically lost their tax-exempt status for failing to file annual reports for three years in a row. …

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Dozens of nonprofit groups in county lose tax-exempt status

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Over 6,000 upstate New York nonprofit groups, including dozens in St. Lawrence County, have automatically lost their tax-exempt status for failing to file annual reports for three years in a row.

According to New York U.S. Sen. Charles Schumer’s office, the Pension Protection Act of 2007 requires tax-exempt organizations to file a return or notice each year with the IRS, and the law automatically revokes the tax-exempt status of groups that do not file for three consecutive years. As a result, the first nonprofits to be revoked under the new law saw their status removed based on 2010 returns, filed in April of this year.

Schumer’ office says that losing their exemptions could cost Little Leagues, public libraries, museums and other non profit groups thousands of dollars each.

In St. Lawrence County, the groups cited on the IRS list are:

• American Legion, North Lawrence

• St. Lawrence Larries Booster Club, Brasher falls

• Delta Phi Alpha, Canton

• Masons Joint Apprenticeship, Canton

• St. Lawrence Aquarium, Canton

• Complete Our Pavilion, Inc., Canton

• Friends of New Canton Fire Station, Canton

• North Country Women’s Center, Canton

• Civil Service Employees Association, Canton

• Parishville Housing Development, Canton

• Beaver Creek School, DeKalb Junction

• American Federation of Teachers, Canton

• Dry Timber Lake, Inc., Gouverneur

• Triple E Lodge, Gouverneur

• North Country Street Stuff, Gouverneur

• Order of the Eastern Star, Richville

• Hermon Heritage Hall, Hermon

• Heuvelton Lions Club, Heuvelton

• International Association of Lions, Heuvelton

• Heuvelton Cemetery Association, Heuvelton

• Order of the Eastern Star, Heuvelton

• American Legion, Madrid

• Order of the Eastern Star, Madrid

• New York Congress PTA, Massena

• Benz Pond Club, Massena

• Bobs House, Massena

• American Federation of Teachers, Massena

• Power Authority of the State of New York, Massena

• American Federation of Labor, Massena

• Seaway Training Funds, Massena

• Little League, Massena

• Mile Brook Sportsman Club, Massena

• Tucker Terrace Water Corp. , Massena

• Free and Accepted Masons, Morristown

• Newton falls Sports and Recreation, Newton Falls

• St. Lawrence Community Coop, Norfolk

• Tri-Town Motorcycle Club, Norfolk

• Norwood Lake Association, Norwood

• Nightingale Research Foundation, Ogdensburg

• Augsbury Institute, Ogdensburg

• Redbrick Farm Therapeutic Riding, Ogdensburg

• St. Lawrence Hospital Council, Ogdensburg

• PTA New York Congress, Ogdensburg

• American Legion, Ogdensburg

• Veterans of Foreign Wars, Ogdensburg

• Rivers Edge Yacht Club, Ogdensburg

• Cancer Action NY, Ogdensburg

• Pierrepont Manor Cemetery, Pierrepont

• Chi Epsilon, Potsdam

• National Association of Geology, Potsdam

• American Legion, Potsdam

• Potsdam Youth Center, Inc. , Potsdam

• Families for Early Autism, Potsdam

• Sandstoner Community Foundation, Potsdam

• Our House of Potsdam, Potsdam

• Dannys Gang, Inc., Potsdam

• Delta Sigma Phi Fraternity, Potsdam

• North Country Citizens for..., Potsdam

• Azure Mountain Club, Inc., Potsdam

• American Association of University Women, Potsdam

• Composers Ensemble of Northern New York, Potsdam

• Community Nursing Home of Potsdam, Potsdam

• Institute for Learning Centered, Potsdam

• Order of the Eastern Star, Potsdam

• Angel Trax Incorporated, Potsdam

• Racquette River Fire Corporation, Potsdam

• Long Rapids Fife & Drum Corp., Potsdam

• Pyrites Youth Improvement Group, Pyrites

• PTA New York Congress Knox, Russell

• Sigma Gamma Tau National Honor Society, Potsdam

• Tau Kappa Epsilon Fraternity, Potsdam

In many cases, nonprofit groups may have been unaware of this requirement to file annual reports, and the stripping of tax exempt status is a mistake rather than a sign that the group is no longer operational or has not filed the proper paperwork. Luckily, this IRS error can be reconciled, but nonprofit groups must act soon to avoid paying higher fees, Schumer’s office says.

Suggestions include:

• If your nonprofit group has met its filing requirements over one or more of the last three years, fax copies of your past tax returns to be reinstated into tax-exempt status at no cost to your group.

• If your nonprofit group makes under $50,000 in income, and has not filed tax returns over the past three years, file for reinstatement before December 31, 2011, for a reduced fee of $100.

• If your nonprofit group does not file before December 31, 2011, the fee to file for reinstatement jumps to between $400 and $850 for 2012.

• If your non-profit group does not file before December 31, 2011, the fee to file for reinstatement jumps to between $400 (under $10,000 in annual income) and $850 (over $10,000 in annual income) for 2012.

• If an organization on the Auto-Revocation List has documentation that it met its filing requirement for one or more years during the three year period, an organization possessing documentation (an IRS receipt for a filed return, for example) that shows it has not failed to file for three consecutive years should contact Customer Account Services, or send the documentation directly to the Exempt Organizations Account Unit by mail to Internal Revenue Service, 1973 North Rulon White Blvd., M/S 6552, Ogden, UT 84404; or by fax, (801) 620-5555.