Local organizations in danger of losing tax-exempt status

Published 2:08 pm Thursday, July 29, 2010

Several non-profit organizations in Brewton, East Brewton and Flomaton are in danger of losing their tax-exempt status, the Internal Revenue Service announced this week.

The organizations failed to file required returns for 2007, 2008 and 2009, but can preserve tax-exempt status by filing returns by Oct. 15 under a one-time relief program, IRS officials said.

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

Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice, and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

Small organizations required to file Form 990-N simply need to go to the IRS Web site, supply the eight information items called for on the form, and electronically file it by Oct. 15. That will bring them back into compliance.

Under the VCP, tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by Oct. 15 and pay a compliance fee. Details about the VCP are on the IRS web site, along with frequently asked questions.

If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.

Organizations in the Brewton area include:

ACT Inc., Brewton

American Postal Workers Union, Brewton

Ball Hill Hunting Club Inc., Brewton

Brewton Youth Football Inc., Brewton

Escambia County Historical Society, Brewton

Escambia Search Dog Association, Brewton

Jesus Is Lord Ministries Inc., Brewton

Kingdom Resource and Development Inc., Brewton

Nationalized Management Services Inc., Brewton

Order of the Eastern Star, Brewton

Pine Grove Community Outreach Inc., Brewton

Pineview Foshee Volunteer Fire Department Inc., Brewton

Sepulga River Hunting Club Inc., Brewton

Southwest Alabama Transit System Inc., Brewton

Called-Out Minsitries Inc., Castleberry

Order of the Eastern Star, Castleberry

International Brotherhood of Electrical Workers, Flomaton

Flomaton Volunteer Fire and Rescue Inc., Flomaton

Travelers Rest Cemetery Association, Flomaton

Turtle Point Foundation, Flomaton