PATERSON, NJ - The Internal Revenue Service has revoked the tax-exempt status of approximately 275,000 organizations nationwide - including 93 in Paterson - because they did not file legally required annual reports for three consecutive years.
Among the groups on the list are Bethel AME Community Development, Fourth Ward Community Development, the Paterson Education Association, the Paterson Pastors Workshop, and the Community Baptist Church Economic Development Corporation.
The IRS has posted a complete list of every group that has its tax-exempt status revoked.
In a June 8 press release, the IRS said it believes the majority of the 275,000 organizations are defunct, but it also outlined steps that existing organizations could take to apply for reinstatement of their tax-exempt status.
The IRS' action stems from the Pension Protection Act (PPA), which Congress passed in 2006, the press release said. The act require most tax-exempt organizations to file an annual information return or notice with the IRS. For small organizations, the law imposed a filing requirement for the first time in 2007. In addition, the law automatically revokes the tax-exempt status of any organization that does not file required returns or notices for three consecutive years.
“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 in the press release. “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.”
During a five-month extension period, about 50,000 groups around the country filed the requisite paperwork, according to the IRS.
The IRS has put out a list of Frequently Asked Questions about the new law.