Thousands Of Kentucky Non-Profits Lose Tax-Exempt Status
From Brenna Angel, Kentucky Public Radio More than 3,000 Kentucky nonprofits recently lost their tax-exempt status with the IRS and a few are working to reverse that.The thousands of nonprofit organizations that lost their tax-exempt status with the IRS represent a wide range of interests, including county fair associations, American Legion chapters, and religious groups. Danielle Clore of the Kentucky Nonprofit Network says the groups were affected by the 2006 federal Pension and Protection Act.“We just had so many organizations who had not ever had to communicate with the IRS because if they had gross receipts under $25,000 they did not have to file any kind of informational return with the IRS. So this law changed that,” she said. Clore says many of the organizations are no longer active or merged with other groups. Since the list of nonprofits with a revoked tax exempt status was released earlier this month, around two dozen have contacted the Kentucky Nonprofit Network seeking help to resolve the issue.