- Posted by Johanna on July 6, 2010 at 8:09 pm
- Category: Comic News
I suspect no one cares about this story at all, but in the interests of completeness:
Thanks to my local paper, who did their own version of the story about some charitable tax exemptions being in danger, I found the IRS Master File, which lists all exempt organizations. Now, I am not an accountant or experienced with these files, but they do come with instructions. (I welcome more informed assistance.) From this I found that Friends of Lulu last filed a tax return covering the tax period ending December 2007, and it showed both assets and income of $0.
The article also had more speculation on what may happen with small groups that miss following the rules:
“The IRS has encouraged organizations to go ahead and file if they missed the deadline. They will be issuing guidance on what to do to retain tax-exempt status.”
J. William Gray Jr., a tax-planning lawyer at Hunton & Williams, said the IRS has some constraints on what it can allow. “The law is the law,” he said. “It says clearly that if an organization fails to file for three consecutive years, it loses its exemption and has to reapply. It also says in appropriate conditions it may be reinstated retroactively…. I think they would be inclined to reinstate the exemption retroactively, and they may institute some lower-cost or more streamlined procedures for those types of applicants. You can’t just ignore the law.”