IRS revokes local organizations’ tax-exempt status

Published 9:57 am Thursday, July 7, 2011

The Internal Revenue Service revoked the tax-exempt status from more than 3,400 Alabama organizations last week.

A number of Butler County organizations, including the Greenville Lions Club, were listed among that group.

Greenville Lions Club treasurer Hubert Little was surprised to learn that the club had been included on the list and could not confirm that the club had indeed lost its tax-exempt status.

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“I haven’t received any correspondence about that,” Little said. “This is the first I have heard of it.”

Due to a 2006 change in the tax code, the IRS revoked 275,000 groups nationwide.

Before the change, smaller nonprofits were not required to make the annual filings, using Form 990, which the IRS required of larger groups.

The law now requires annual filings from every organization, although smaller groups can provide an online form – the 990-N. Automatic revocation awaits groups that fail to file for three consecutive tax years.

A list of organizations from Alabama that had their tax-exempt statuses revoked may be found at www.irs.gov/charities or by calling the IRS at 1-877-829-5500. Non-profit organizations may visit www.alabamanonprofits.org and sign up for the site’s newsletter to be notified of law changes such as these.