Senate Bill Would Require Revocation Notice

Senate Bill Would Require Revocation Notice

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The National Council of Nonprofits broadly supports the bill, according to spokesman Rick Cohen. “If you can prevent your status from being revoked, it’s much easier than getting it reinstated,” he said. But, Cohen sees two problems that the bill does not address.

The first is that the addresses that the IRS has on file for many of these nonprofits are out of date. The Pension Protection Act of 2006 required a Form 990 to be filed for many small organizations that had never had to file beyond an initial application for exempt status. Since then, “Maybe organizations moved, or it’s volunteer led with no physical office so the contact was the board chair from 20 years ago,” said Cohen. When the notice of revocation “is going to the wrong addresses it doesn’t solve the issue,” he said.

The root of the problem is one far beyond the scope of this bill. “The biggest issue is not notification about potential revocation, it’s Congress’s constant underfunding of the IRS,” he said. “The IRS is needed to perform an oversight role, process exempt status applications and Form 990s as they come in. (Congress) has cut and cut and cut, and what we need is Congress to step up and give the IRS the resources they need to do the job they have.”

Source Name: 
The NonProfit Times
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