IRS warns non-profits to check on non-profit status

SANDPOINT — If they’re not careful, Bonner County non-profits could lose their tax exempt status.

In a list released last week, the IRS named thousands of non-profits across the nation that are in danger of losing their tax privileges. Organizations that have failed to file an information return need to remedy the situation by Oct. 15 or lose their tax exempt status.

“It might be that a lot of these organizations on the list are no longer bona fide,” IRS spokeswoman Karen Connelly said. “But those that are still in operation need to address this situation.”

The good news? The problem is easy to fix. The IRS has prepared a one-time form that non-profit representatives can complete in about 10 minutes.

According to the IRS, local sports associations and community support groups, volunteer fire and ambulance associations and their auxiliaries, social clubs, educational societies, veterans groups, church-affiliated groups and groups designed to assist those with special needs all need to ensure that they’re square with the government.

Most organizations in danger of losing their tax exempt status are small groups that have failed to comply with the Pension Protection Act of 2006, which requires organizations to file an annual return or submit an electronic notice. The IRS list also names larger organizations that might have other tax problems.

Bonner County Homeless Task Force Board of Directors President Craig Koester said they were on the list for different issues that have since been addressed.

“We’ve been in communication with the IRS, and they tell us we’re in good standing,” he said. “The information filing issue seems to mostly concern organizations that take in under $50,000 a year.”

Information: www.irs.gov/charities/article/0,,id=225702,00.html