Friday, July 01, 2011

IRS surprises Charities and non-profit groups with tax exemption cuts

According to the New York Times;
“The I.R.S. announced on Wednesday that it had revoked the tax exemptions of 275,000 non-profit organizations after they did not meet legal requirements to file annual tax forms.
The action shrinks the nation’s growing nonprofit sectorby roughly 17 percent, to about 1.3 million charities, trade associations, membership groups and labor unions.”

 

It is all due to a 2006 change in the laws governing tax exemptions. It’s called the Pension Protection. The excuse is to stop defunct organizations from collecting tax exempt funds.
Locally there were at least 400 charities, trade associations, sports organizations and labor unions in Wichita affected by this.
In all likelihood, conservatives are using this against unions and trade associations. After the mess we saw in Madison, WI, this year, we now know that conservatives will do anything to hurt the empowerment of working people. And being for the rich and hostile towards groups for poor people, it is no surprise they didn’t care that charities would be affected.

 

1 comment:

xlpharmacy said...

This is something should be made carefully, because annuals taxes are all time changing, that's the way associations should take that fact into account.