More than 100 area groups fail to report to IRS, lose tax-exempt status

More than 100 local organizations have automatically lost their tax-exempt status because they did not file required annual reports with the IRS for three consecutive years.

The list includes religious groups, athletic clubs, school organizations and a local festival.

"I had no idea. This is a real shock," said Thomas Cunningham, president of the Chaffee German Day Organization Inc., who has worked with the group that holds an annual festival for more than 20 years.

Cunningham said he didn't recall receiving a notice but that he intended to talk to the IRS in order to get back into compliance.

The Chaffee German Day Organization donates the funds raised to local Scouting groups and the city's park, he said.

Congress passed legislation in 2006 requiring most tax-exempt organizations to file an annual information return with the IRS. That took effect in 2007 and included small organizations that weren't previously required to file annual forms due to the small amounts of revenue they generated.

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.

Darryl Pannier, superintendent of the Nell Holcomb School District, said he had been notified the school's foundation had lost its tax-exempt status. He's been working with the district's accountants and has completed the paperwork necessary to get the tax-exempt status reinstated, he said.

"We've done all the legwork, all we're doing is waiting for them to send us the notification we are good to go," Pannier said.

Southeast Missouri CrimeStoppers has also has lost its tax-exempt status, but the organization no longer feels it is necessary, said Mitch Robinson, chairman of the CrimeStoppers board. The organization typically brings in less than $1,000 annually, he said, and didn't have many requests from donors that their contributions qualify as tax-exempt.

In some cases, organizations listed are no longer operating. This is the case with American Trauma Society of Missouri, which listed Saint Francis Medical Center as its address. According to a hospital spokeswoman, the organization does not operate and the hospital's trauma director was working on getting the organization removed from the list.

Other organizations

Among local organizations that, according to IRS records, did not file required returns for 2007, 2008 and 2009 are: Chaffee High School Alumni, Aids Project of Southeast Missouri, Alpha Kappa Psi Fraternity, Southeast Missouri Carpenters, Southeast Missouri Area Labor, Painters Local Union 1292, Phi Delta Theta Fraternity, Optimist International of Cape Girardeau, SEMO District Fair Foundation, Tau Kappa Epsilon Fraternity, Theta Xi Fraternity, Tiger Athletic Foundation, Inc., Zeta Phi Beta Sorority, Fruitland Area Volunteer Fire Department, Jackson High School Band Boosters, Jackson Industrial Development, Lions International of Jackson, Optimist Club Foundation of Cape Girardeau and Elks Ladies Auxiliary of Perryville.

Small tax-exempt organizations with annual receipts of $25,000 or less can file an electronic notice Form 990-N. This asks for a few basic pieces of information, said Tom Higgins of TRH Accounting in Cape Girardeau, who works with several tax-exempt organizations.

Tax-exempt organizations with annual receipts above $25,000 must file a Form 990 or 990-EZ, depending on their annual receipts, he said. Private foundations file form 990-PF.

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, he said.

"Any of these organizations should contact the IRS to begin the process of getting back in compliance with the law," said Michael Devine, IRS spokesman for Missouri and Kansas.

People may call IRS account services at 877-829-5500 for more information about their organization's status.

mmiller@semissourian.com

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Pertinent address:

112 Themis St, Cape Girardeau, Mo.