Many Chabad Int. Lose Tax Exempt Status
According to the Internal Revenue Service nearly 275,000 organizations, among them many Chabad Houses, nationwide have automatically lost their tax-exempt status because they did not file legally required annual reports for three consecutive years.
The IRS believes the vast majority of these organizations are defunct, but it also announced special steps to help any existing organizations to apply for reinstatement of their tax-exempt status.
Congress passed the Pension Protection Act (PPA) in 2006, requiring most tax-exempt organizations to file an annual information return or notice with the IRS.
The law also automatically revokes the tax-exempt status of any organization that does not file required returns or notices for three consecutive years.
To find out if your group has been affected or to find out how to apply for reinstatement of your tax-exempt status, including retroactive reinstatement, become go to http://1.usa.gov/msKDZ5. The list includes each organization’s name, Employer Identification Number (EIN) and last known address.
It is searchable by state. It also includes the effective date of the automatic revocation and the date it was posted to the list.
The IRS will update the list monthly to include additional organizations that lose their tax-exempt status.
Existing organizations that seek to have their tax-exempt status reinstated must complete an application and pay a user fee regardless of whether they were originally required to file such an application.
Click Here to see the list of organizations that were revoked.
Uncle Mendel
As a CPA, I would suggest each Chabad house have a CPA donate their services to help them in such matters.
Find me at Alrans !!!
I tried
I warned them! I saw the list & I called some mosdos, & the reaction was “yeah, we know.” There you are, then.
From IRS website
Churches that meet the requirements of section 501(c)(3) of the Internal Revenue Code are automatically considered tax exempt and are not required to apply for and obtain recognition of exempt status from the IRS. Donors are allowed to claim a charitable deduction for donations to a church that meets the section 501(c)(3) requirements even though the church has neither sought nor received IRS recognition that it is tax exempt. In addition, because churches and certain other religious organizations are not required to file an annual return or notice with the IRS, they are not subject to automatic revocation of exemption for failure to file. See Annual Return Filing Exceptions for a complete list of organizations that are not required to file.
Nevertheless, many churches do seek IRS recognition of tax-exempt status because that recognition provides reliance to church leaders, members and contributors that a church is recognized as exempt from taxation and is eligible to receive tax-deductible contributions. (For more information, see Publication 1828, Tax Guide for Churches and Religious Organizations.)
Some organizations that identify themselves as churches may appear on the Automatic Revocation of Exemption List (Auto-Revocation List) because IRS records do not identify them as churches, but rather as some other type of organization that has an annual filing requirement. Because these organizations failed to file annual returns or notices for three consecutive years, they appear on the Auto-Revocation List. Donors to these organizations may no longer rely on an IRS determination letter dated before the effective date of revocation or a prior listing in Publication 78 or in the IRS Business Master File (BMF) extract for purposes of claiming tax-deductible contributions. However, if an organization on the Auto-Revocation List is a church that meets the requirements of section 501(c)(3), it remains exempt from taxation and eligible to receive tax-deductible charitable contributions even though the IRS no longer recognizes the exempt status of the organization in Publication 78, in the BMF extract or in a determination letter.
A church on the Auto-Revocation List that wishes to receive a determination letter from the IRS recognizing its exempt status and to appear in Publication 78 and to have its exempt status reflected in the BMF extract must apply for reinstatement of tax-exempt status.
Page Last Reviewed or Updated: June 08, 2011
Yossi
CHABAD LUBAVITCH OF N A INC 216 SMITH ST WOODMERE
CHABAD LUBAVITCH OF SAMARA 24 BALFOUR PL BROOKLYN
CHABAD LUBAVITCH OF SOUTHERN SPAIN 1601 CARROLL ST BROOKLYN
CHABAD LUBAVITCH OF THE LOWER EAST 1051 E 28TH ST BROOKLYN
CHABAD LUBAVITCH OUTREACH CENTER 383 KINGSTON AVE STE 33 BROOKLYN
CHABAD OF WALL STREET & BATTERY 139 FULTON ST RM 202 NEW YORK
Milhouse
Kitzur of #3: Most Chabad Houses are automatically tax exempt, and don’t need to file anything, so they remain exempt even if they appear on this list. Some of these mosdos may have chosen one year to file voluntarily, maybe because a donor asked them to; then when in subsequent years they didn’t file they automatically appeared on this list.
The list itself means nothing at all; there are many mistakes on it, and the IRS has handled it in a very unprofessional manner. For instance, “University of Michigan” and “George Washington University” appear on the list! On further examination it turns out that these don’t refer to the universities themselves but to small organizations or clubs that may no longer exist.
Similarly, some of these “Chabad Houses” may actually refer to temporary funds that the Chabad House set up once, and no longer operates. For instance, suppose Chabad of Yehupetzville set up an emergency fund to recover from a fire, and filed for a tax exemption as “CHABAD LUBAVITCH OF YEHUPETZVILLE AND DISTRICT FIRE EMERGENCY FUND”. They raised all the money they needed, rebuilt their facilities, and closed the fund; and of course they stopped filing returns for it. Three years later it would appear on the list as “CHABAD LUBAVITCH OF YEHUPETZVIL”, and people would think that the Chabad House had lost its status, when really it was just the defunct emergency fund.
See http://philanthropy.com/art… for more about this list.
Sandy Deja
The IRS is offering transitional relief for small revoked groups. It’s one of the best deals I’ve seen in my four decades of professional involvement with non-profit taxes. If you can honestly say there is still a need for your non-profit, and you feel you can muster the human and other resources needed to sustain it, don’t pass up this opportunity.
There are no shortcuts. You will have to fill out a new exemption application and pay an IRS User Fee. But for organizations with annual gross receipts normally less than $50,000, the User Fee will be reduced to only $100 and reinstatement will be retroactive. The offer is only good through December 31, 2012. You can find the details in IRS Notice 2011-43.