Politics & Government

IRS Revokes Tax Exemption Status from Nonprofits

More than 50 Los Gatos nonprofits have been penalized for failing to submit the required tax documents to the I.R.S.

More than 50 Los Gatos nonprofits have had their tax-exemption status revoked by the Internal Revenue Service after failing to complete the required annual paperwork three years in a row.

The Los Gatos nonprofits are part of the 275,000 organizations nationwide that reportedly failed to file an annual notice with the I.R.S.

The action “shrinks the nation's nonprofit sector by roughly 17 percent, to about 1.3 million charities, trade associations, membership groups and labor unions,” wrote Stephanie Strom in The New York Times.

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While some of the organizations that supposedly failed to submit the required paperwork to the I.R.S are thought to be defunct, some – such as the Los Gatos Yaht Club, the Los Gatos Motorcycle Club and Friends of the Winemakers – are up and running.

The Los Gato Motorcycle Club, which has been intact for 54 years, had its latest meeting on June 2nd, according to its website.

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The Los Gatos Chamber of Commerce is also on the list, but Executive Director Ronee Nassi says its the old Chamber of Commerce listed, not the the current one.

"The revokation of the exempt tax status is for the old Chamber of Commerce not the current Chamber," Ronee Nassi said via email. "It is a different tax ID number and has been defunct since the 1990s or earlier than that. The current Los Gatos Chamber of Commerce was formed in 1999 and has in no way lost its exempt status."

The large number of nonprofits that failed to file their annual notice may be the result of a change in federal law that occurred in 2008. The Pension Protection Act of 2006 originally required organizations with an annual revenue of $25,000 or more to file, but 2008 changes required all organizations to file – something many nonprofits seemed to be unaware of.

That's certainly the case with The Photographic Guild of Los Gatos, whose CEO was surprised and confused to hear that his tax-exemption status was revoked.

Charles Schmidt, the guild's CEO, said the nonprofit filed their notice a couple days late in 2010, but that they never received a delinquency notice.

"We came very close in last year's filing, but we never received a notice saying it was rejected, but we did file a couple days late," Schmidt said. "I have been filing for the past three years [and] they've all been filed correctly."

Below is a list of the Los Gatos nonprofits that had their tax-exemption status revoked by the I.R.S. You can read the entire New York Times article here. 

LOS GATOS CHAMBER OF COMMERCE
PO BOX 1820
VALLEY WEST GENERAL HOSPITAL     
15891 LOS GATOS ALMADEN RD     
FRIENDS OF THE WINEMAKERS        
PO BOX 546    
LOS GATOS YACHT CLUB      
PO BOX 1422 PENINSULA CHAPTER TWA CLIPPED WINGS 576 W PARR AVE UNIT 26 
BUSINESS & PROFESSIONAL WOMENS CLUB 439 ALBERTO WAY UNIT 107 COMMITTEE FOR OPEN MEDIA         
PO BOX 549  
PUBLIC INTEREST RESEARCH CENTER INC 25740 ADAMS RD   
PUBLIC INTEREST LAW CENTER     
25740 ADAMS RD   
LOS GATOS MEADOWS RESIDENTS     
110 WOOD RD  
ARC ANGEL INC        
14680 SHANNON RD  
FOUNDATION TO AID MINORITIES IN  
1644 HYDE CT    
LEXINGTON HILLS ASSOCIATION      
PO BOX 1262      
STAMPCATS INC          
PO BOX 793   
CHARLIE WEDEMEYER FAMILY FOUNDATION PO BOX 2280   
WEST VALLEY SWIM CLUB    
PO BOX 1180 
LOS GATOS MOTORCYCLE CLUB     
PO BOX 802 
MOUNTAIN ART GUILD  
PO BOX 1616 
RIVER ROCK RANCH                 
15768 HIDDEN HILL PL      
PHILLIP J KRONZER FOUNDATION FOR 
15 FILLMER AVE  
KEVIN J RYAN FOUNDATION INC   
15951 LOS GATOS BLVD STE 11      
INSTITUTE FOR DECISION SYSTEMS   
59 N SANTA CRUZ AVE STE Q     
STRIKKERS 12 AND UNDER          
347 SYCAMORE CT    
BRANDON FOUNDATION       
16470 MATILIJA DR 
BAYMEC EDUCATION FOUNDATION    
255 JONES RD   
RADIOLOGICAL ASSOCIATES MEDICAL 
PO BOX 1255      
CENTER FOR THERAPEIA AND THE ARTS
347 MASSOL AVE APT 706 PHOTOGRAPHIC GUILD OF LOS GATOS 
15880 BLOSSOM HILL RD MISSION OAKS HOSPITAL AUXILIARY  
15891 LOS GATOS ALMADEN RD
LOS GATOS PEACE FORUM           
PO BOX 431    
THE GOLD COAST ARABIAN HORSE   
19320 BLACK RD    
ACROBIONICS SCIENCE RESEARCH 
16201 CAMINO DEL SOL  
THE ANIMAL SOCIETY OF LOS GATOS AND PO BOX 64  
LOS GATOS FRIENDS OF THE ARTS   
100 CASA GRANDE 
JOSEPH B RIDDER FOUNDATION       
301A SARATOGA AVE 
SOUTH BAY ADOPTION SUPPORT GROUP 24662 SOQUEL SAN JOSE RD   
CALIFORNIA COASTAL YOUNG PEOPLES PO BOX 241     
HIGHLAND FARM CENTER OF SANTA CRUZ 24750 MILLER HILL RD     
SKY LANE MUTUAL WATER CO       
14800 SKY LN 
FOTO-CLAVE        
124 BLOSSOM GLEN WAY             
SAN JOSE ARCHERY CLUB         
19719 SKYLINE BLVD   
HUBBARD COLLEGE OF ADMINISTRATION 220 BELGATOS RD  
VIRTUAL INCUBATOR ACADEMY     
15466 LOS GATOS BLVD STE 109    
SOUTH BAY NEEDLEPOINTERS CHAPTER OF 14341 OKA LN
OUR YESTERDAYS CHILDREN     
119 SUMMERWOOD DR
PEOPLE FOR AN ENERGY POLICY PEP  
183 LONGMEADOW DR 
OAKMONT CLUB          
20915 OLD SANTA CRUZ HWY     
NATIONAL PHILANTHROPIC SOCIETY  
19890 OLD SANTA CRUZ HWY
EDUCATIONAL SYSTEMS CORPORATION 18400 OVERLOOK RD UNIT 69 
WOODED VIEW ACRES MUTUAL WATER 
PO BOX 1353   
TEMPRESS ACTIVITIES GROUP        
980 UNIVERSITY AVE   
AMERICAN ATHLETES DEVELOPMENT    
PO BOX 1128  
AMERICAN ATHLETES DEVELOPMENT    
PO BOX 1128      
MONTEREY ARABIAN HORSE CLASSIC
PO BOX 999    
IONA INCORPORATED    
19313 BEAR CREEKRD
PENNY PLAIN THEATRE CO OF SAN JOSE 21536 OLD MINE RD  
ROGERS LLOYD MEMORIAL SCHLARSHIP PO BOX 248   
PAST OFFICERS AND SOJOURNERS ASSO
16755 CHIRCO DR                  


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