IRS Revokes Exemptions for 71 Birmingham Non-Profits

The IRS has pulled the tax-exempt status of at least 71 Birminghan non-profits, all of which are believed to be now defunct or in violation of tax rules.

The New York Times reported that the Internal Revenue Service revoked the status from 275,000 groups last week after they failed to meet legal requirements to file annual tax reports for three consecutive years.

According to a press release issued by the IRS, the federal organization has made several attempts to notify the groups, but most of these organizations are believed to be defunct.

In 2006, Congress passed the Pension Protection Act, requiring most tax-exempt organizations to file an annual information return or notice with the IRS. For small organizations, the law imposed a filing requirement for the first time in 2007. In addition, the law automatically revokes the tax-exempt status of any organization that does not file required returns or notices for three consecutive years.

Representatives from the IRS said they believe the vast majority of small tax-exempt organizations are now in compliance with the 2006 law.

"Still, we realize there may be some legitimate organizations, especially very small ones, that were unaware of their filing requirement," IRS commissioner Doug Shuman said. "We are taking additional steps for these groups to maintain their tax-exempt status without jeopardizing their operations or harming their donors."

Organizations stripped of their tax-exempt status in Birmingham include:

• Hungry No More, Inc. the Alexis Foundation  
•  Friends of Leader Dogs  
•  Balalaika Orchestra of Detroit  
•  Loren B. Fischer Memorial Fund  
•  Armenian-American Business Council  
•  People for Parks  
•  Mailyn Scheid Malin Foundation  
•  Manna of Detroit  
•  Adult Attention Deficit Foundation  
•  4Ukid  
•  Grand View Beach Association  
•  Trinity Association  
•  Grander View Foundation  
•  Hotline  
•  the Korea Scholarship Fund  
•  Cuellar Foundation, Inc  
•  Friends of Leader Dogs  
•  John Canine Evangelism, Inc  
•  Oakland County Dental Assistants  
•  Volunteer Network of Metropolitan Detroit  
•  Performing Arts Unlimited  
•  The Rabbi Daniel Y. Schwartz  
•  Birmingham Singles Club  
•  Michigan Blind Research Foundation  
•  Cranbrook Writers Guild  
•  Birmingham Toastmasters  
•  Live N Give, Inc.  
•  Victorious Word Ministries, Inc.  
•  Michael Wade Kaplan Foundation  
•  Rodney Lloyd Ministries, Inc.  
•  Painters Local 1803  
•  Linda Dresner Levy Foundation  
•  Pancretan Association of America  
•  American Legion Auxillery  
•  Birmingham Jaycee Auxillery, Inc.  
•  North American Yugoslavian Medical Association  
•  The Prism  
•  Classical Arts Ballet Company  
•  Orchard Valley Hilltop Property  
•  Fan Club Foundations for the Arts  
•  Legal Assistants Assocation  
•  I Care International  
•  Reach Out, Inc.  
•  Trees Detroit, Inc.  
•  World Servers Group  
•  La Casa Folk Music Series  
•  Michigan Aborist Associaton  
•  Better Life, Inc.  
•  Greenfield Partners Foundation  
•  Concours Italian Style Foundation  
•  Hockman Foundation  
•  Rescuers United Network  
•  Digital Detroit  
•  Magic of Children Foundation  
•  Taliaferro Estates Association, Inc.  
•  Birmingham Society of Women  
•  Monica Guild  
•  Southeastern Michigan Surgical Association  
•  Sheffield Estates Civic Association  
•  Society of Appraisers  
•  South Oakland County Model Railroad  
•  Republican Foundation  
•  Welcome Wagon Birmingham  
•  University of Pennsylvania Alumni  
•  Associated Metal Fabricators  
•  Dads Empowered  
•  Committee for Children's Television

Several of these organizations have disbanded in the past few years, including the Cranbrook Writers Guild, which turned over its remaining funds to Springfed Arts in September 2010, and the Armenian-American Business Council, representatives from confirmed.

For others, the news was a surprise. Kirt Manecke, president of the Birmingham Toastmasters, said they submitted their 990-postcard and believed to be in compliance with all tax laws. The group, which trains its members in public speaking, celebrated its 60th anniversary Tuesday night and will be checking  with the IRS immediately.

For non-profits looking to regain tax-exempt status, the IRS has issued instructions on how to do so, including retroactive reinstatements.

In addition, the IRS announced transition relief for certain small tax-exempt organizations — those with gross receipts of $50,000 or less for 2010 — that were made subject to the new "postcard" filing under the Pension Protection Act. The relief allows eligible small organizations to regain their tax-exempt state retroactive to the date of revocation and pay a reduced application fee of $100 instead of the typical $400 or $850.

For a complete list of organizations that were revoked, visit the IRS's website.