Many Local Organizations Lose Tax-Exempt Status

After failing to meet annual reporting requirements for three consecutive years, many local charities and nonprofits have had their federal tax-exempt status revoked, according to the IRS.

This includes Southampton COMPASS Foundation, the Southampton Preservation Society, Sons & Daughters of Liberty, the Bridgehampton Lions Club, the Old Cemetery Association of Bridgehampton, the American Legion Bridgehampton and upwards of 30 more.

The IRS released a national list this month of 275,000 affected organizations, the vast majority of which the IRS says are likely defunct. In Southampton, many of the organizations listed were briefly active in recent years but did not get far off the ground. Some are local chapters of national organizations.

The reporting requirements were established by the Pension Protection Act in 2006. “During the past several years, the IRS has gone the extra mile to help make tax-exempt groups aware of their legal filing requirement and allow them additional time to file,” IRS Commissioner Doug Shulman was quoted as saying in an IRS statement. “Still, we realize there may be some legitimate organizations, especially very small ones, that were unaware of their new filing requirement. We are taking additional steps for these groups to maintain their tax-exempt status without jeopardizing their operations or harming their donors.”

Donations made prior to the publication of an organization’s name on the list remain tax-deductible, according to the IRS, but organizations that had their status revoked and fail to receive reinstatement will be ineligible to receive tax-deductible contributions and any income they receive may be taxable.

Formerly tax-exempt organizations in eastern Southampton Town that have had their status revoked:

Southampton:
Southampton COMPASS Foundation
Southampton Preservation Society
Best Friends Foundation
Bluefish Literary Guild
Center for Aging Research and Education
Friends of the Southampton College
Greek Hamptons Conservation
Heart of the Wild Sanctuary and Rehabilitation Centre
International Community for Relief of Starvation
Madam Curie Club
Mecox Foundation
Soirees Musicales at Southampton
Sons & Daughters of Liberty New York Local 6
Suffolk County Retail Wine and Liquor
Tau Kappa Episilon Fraternity Inc at Southampton College, 380 Mu Pi Chapter
War Memorial Fund Inc.

Bridgehampton:
Bridgehampton New York Lions Club
American Legion Bridgehampton
Citizens Advisory Panel Inc.
East End Preservation Charitable
Hampton Animal Shelter Inc.
Old Cemetery Association of Bridgehampton
PCOS Awareness Campaign Corp
Wilderness Experiences
Zone Inc. Bridgehampton

Water Mill:
The Halt the Highway Plan
JC for JD
Worldwide Media & Vocal

Sag Harbor:
Knights of Colombus Sag Harbor Council
Society of Integrated Arts
South Fork Groundwater Task Force
Amateur Athletic Union of the United States
Authentic Design Experience
BMP I32 Welfare and Benefit Fund
Hampton Life Arts
Human Growth and Development Group
Paddling East Inc
Peconic Theater Company