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Washington Co. groups lose nonprofit status

June 30, 2011|By ANDREW SCHOTZ | andrews@herald-mail.com

HAGERSTOWN — Dozens of groups in Washington County are among those that have lost their nonprofit status across the nation.

The U.S. Internal Revenue Service issued a new list on June 9, naming the groups that had failed to file the necessary documents to retain that designation.

Under the federal Pension Protection Act of 2006, nonprofit groups that took in less than $25,000 a year in gross receipts had a new reporting requirement.

If they didn’t file within three years, they would lose their nonprofit status, meaning contributions they received would no longer be tax deductible, according to IRS spokesman Jim Dupree.

The filing deadline was in May 2010.

Two months later, when it was clear that numerous groups didn’t know about the deadline, the IRS extended it to October 2010.

Dupree said groups have to reapply if they want to keep their nonprofit status.

The fee is $400 for organizations with gross receipts of less than $10,000 a year and $850 for organizations with gross receipts of $10,000 to $25,000 a year.

Groups might be eligible for a discount on the fee, dropping it to $100, Dupree said.

Within Washington County, the new list of groups that lost their nonprofit status included Antietam Skating Club, Clear Spring Garden Club, Dream Come True, Friends of Washington Monument, Hagerstown Area Youth Soccer League, Hagerstown IBM Club, Hagerstown Thunder All Stars, Maryland Classified Employees Association, South Hagerstown Athletic Club and the International Brotherhood of Teamsters 992 RE, which was a retiree group that is a separate organization from the Teamsters local union.

Harrison Lushbaugh, the last president of the Teamsters retiree group, said Tuesday that the retiree group disbanded several years ago and no longer needed the nonprofit status.

The list of organizations that lost their nonprofit status in each state is posted at http://www.irs.gov/charities/article/0,,id=240099,00.html.

Editor's note: This story was updated at 10:10 a.m. on Tuesday, July 5, to reflect a correction regarding the nonprofit status of the International Brotherhood of Teamsters 992 RE.

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