IRS Strips Non-Profit Status of Local Organizations

The Internal Revenue Service (IRS) stripped numerous non-profits of their tax exemption status this month because the groups falied to file "legally required reports" for three consecutive years, according to IRS officials.

The Pension Protection Act of 2006, which was passed by Congress, requires almost all non-profits to file annually.

Though officials believe a majority of the named organizations are actually defunct, the IRS is taking "special steps" to help the approximate 275,000 affected organizations, including the in Mineola.

IRS officials said they made an "extensive effort" to inform organizations of the changes in law for years, publishing a list of at-risk organizations last year and giving an additional five months for smaller organizations to comply.

“During the past several years, the IRS has gone the extra mile to help make tax-exempt groups aware of their legal filing requirement and allow them additional time to file,” IRS commissioner Doug Shulman said. “Still, we realize there may be some legitimate organizations, especially very small ones, that were unaware of their new filing requirement. We are taking additional steps for these groups to maintain their tax-exempt status without jeopardizing their operations or harming their donors.”

Attempts to contact the American Legion were not successful.