November 10, 2015

Tax exempt status in limbo


A letter from the Internal Revenue Service to the Garrison-Max Ambulance Service saying its 501c3 tax exempt status is revoked took the board by surprise last week.

Members gasped, shaking their heads and saying "no," when the announcement was made by Manager Tara Cooper. She said she was also shocked.

The reason, the IRS said, is because the service did not file a Form 990 for three years in a row. A Form 990 demonstrates to the IRS the charitable purpose of the organization and, hence, its tax-free status.

Cooper said she immediately called the IRS, asking, "how is that possible when our status was just approved Aug. 25, 2015?"

The reply was: "oh, there must be an error in our system. We are going to put through a referral … and you should hear from us within days."

The Weather Network