Nonprofits hustle to meet IRS deadline

Staunton’s Stonewall Brigade Band was one area nonprofit to beat the Monday midnight deadline for sending a form to the Internal Revenue Service to keep its federal tax-exempt status.

Brigade President Hannah Bush said she learned of Form 990 over the weekend, and promptly filed it electronically Sunday morning so the group can continue to receive fine arts grants.

IRS spokesman Jim Dupree said under the 2006 Pension Protection Act, all nonprofit organizations other than churches are required to file Form 990. Any organization that fails to file the document for three consecutive years automatically loses federal tax-exempt status.

According to a database compiled by The National Center for Charitable Statistics, almost 50 such area organizations in Waynesboro, Staunton and Augusta County, ranging from stargazing and birdwatching groups to booster clubs and health awareness organizations, were in jeopardy Monday.

While the IRS said letters were sent to the affected 500,000 tax-exempt organizations, Bush said she does not recall seeing one.

“I don’t recall any kind of notification,’’ she said.

Lou Dolive, president of Waynesboro’s Schola Cantorum choral group, said he saw newspaper stories in recent weeks that alerted him to the need to file a 990. “They [articles] got us worried,’’ he said.

Dolive said he filed the form last week.

“It is a sense of relief and also a sense of relief to have the IRS respond,’’ said Dolive who said the organization needs donations to pay for orchestras for twice-yearly concerts.

Dupree said notices would have been sent to the affected organizations soon after the 2006 passage of the Pension Protection Act and at least three times afterwards.

In addition, the IRS has consistently contacted libraries, trade organizations and groups that work with nonprofits, contacted state and federal agencies that have jurisdiction over nonprofits and put articles in community newsletters.

The National Council of Nonprofits issued a statement late Monday the in support of the IRS efforts: “The National Council of Nonprofits applauds the IRS, Guidestar, State Associations of nonprofits around the country, and many other groups that have been going to great lengths over the past three years to get the word out about the requirement … It is unfortunate that not all nonprofits have been aware of this change in the law. So those organizations may re-qualify for tax-exempt status, we encourage them to reapply with the IRS.”

While the IRS estimated that more than 200,000 small nonprofits were on the deadline clock Monday, that number might not be completely accurate.

The IRS database listed the Waynesboro Fire Department Ladies Auxiliary as one of the area organizations needing to file Form 990. But that organization has been defunct for more than a decade, said Waynesboro Fire Chief Charles Scott, who has worked for the department for 33 years and served as chief for 15 years.

“The first aid crew has a ladies auxiliary that functions for us as well,’’ he said.

Augusta County Fire-Rescue Inc., a nonprofit entity that provides fire education and smoke detectors for the needy, has requested an extension to file Form 990, said Assistant Augusta County Administrator John McGehee.

“We’ve made contact with the individual and we will file an extension,’’ McGehee said. Dupree said the extensions are allowed for three months.

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