PFAU ENGLUND N O N P R O F I T L AW, P. C. BY FAX TO: 202-228-0554 The Honorable Max Baucus, Chairman Committee on Finance, United States Senate 219 Dirksen Senate Office Building Washington, D.C. 20510 August 23, 2011 Re: IRS implementation of Section 6033(j) of Internal Revenue Code Automatic revocation of tax-exempt organizations, including churces Dear The Honorable Max Baucus and the U.S. Senate Committee on Finance: Your immediate attention is respectfully requested with respect to the IRS implementation of the auto revocation of tax-exempt status of organizations under section 6033(j) of the Internal Revenue. A software computer programming or other error is resulting in the revocation of hundreds if not thousands of organizations in error, including in particular churches and subordinate organizations under group letter rulings. We ask that this issue be reviewed immediately, and that the IRS autorevocation system be suspended until this issue is resolved. Section 6033 of Title 26, Internal Revenue Code, was passed as part of the Pension Protection Act of 2006. Under the statute, section (j), paragraph (1) provides that the tax-exempt status of organizations required to file an annual information return, Form 990N, 990EZ or 990, will be automatically revoked, If an organization fails to file an annual return or notice for 3 consecutive years. Certain organizations, including churches, however, are exempt from filing IRS Forms 990. Despite being exempt from the 990 filing requirement, hundreds, if not thousands, of churches have had their tax-exempt status revoked. Further, based on statements published by the IRS, the IRS is aware of this problem and is choosing to allow the revocations to continue. A recent search of the published IRS auto revocation list (located at http://www.irs.gov/charities/article/0,,id=240099,00.html) returned 27 pages of revoked church exemptions listed in 9 point type. Included among these is the District of ColumbiaIslamic Center, a well-known mosque dedicated by President Dwight D. Eisenhower and visited immediately after the September 11 th attacks by George W. Bush. This mosque has been incorporated and recognized as tax-exempt by the IRS since 1945. The mosque has never filed IRS Forms 990 because, as a church its not required to. An IRS agent visited the mosque earlier this year after the mosque first received notice regarding a failure to file IRS Forms 990. The agent agreed that the mosque was a church exempt from the 990 filing requirements and promised to get the error corrected. Nevertheless, the mosque was included on the IRS June 2011 auto revocation list; more recently this month the mosque received a letter from the IRS stating that it s request to be reclassified as a church was denied. 3213 Duke Street. #622 Alexandria, VA 22314 Main: 703/304.1204 Fax: 866-334-6421 SPFAU@NONPROFITLAW.COM Admitted in VA and DC. Practice otherwise limited to matters before federal agencies such as the IRS.
cc: Congressman Daniel Webster By email at: https://webster.house.gov/contact/contactform.htm Lois Learner, Director, Exempt Organizations By fax to: 202-283-8858 Cindy Thomas, EO Determinations 555 Main Street Cincinnati, Ohio 45202 Monice Rosenbaum/Preston Quesenberry Office of Division Counsel/Assoc. Chief Counsel TE/GE Internal Revenue Service Washington, D.C. 20220 Taxpayer Advocate Ft. Lauderdale, FL By fax to: 954-423-7685 Taxpayer Advocate National systemic issue By email at: http://aps.irs.gov/app/samsnet PAGE 2 OF 4
Name of PBUSA member Guyer HS Orchestra McKinney North HS Cheer Booster Club Nichols Sawmill Elementary PTO, Inc. Calallen Tennis Booster Club Jacksonville FFA Alumni Association Sultana Football Friends of Conval Soccer Booster Perrysburg Vocal Music Boosters Agents All Star Booster Organization W Mifflin Titans Baseball Boosters Stafford High School Choral Boosters Traveling Knights of Old Bridget Foothills Baseball Dugout Club, Inc. Westwood Band Boosters Treadway Elementary School PTO, Inc. Dacula High School Golf Top Notch Gymnastics Association TABLE OF PBUSUA MEMBERS WITH EXEMPTIONS BELIEVED TO BE REVOKED IN ERROR EIN of PBUSA member Date joined PBUSA and first obtained 501(c)(3) status Fiscal year Date first IRS Form 990N due IRS revocation date 26-0817110 7/16/2010 May 31 10/15/2011 10/15/2010 0 26-2481489 9/8/2010 April 30 9/15/2011 9/15/2010 0 73-1649556 8/5/2009 Dec 31 5/15/2010 5/15/2010 1 32-0227515 2/1/2008 Dec 12 5/15/2009 5/15/2010 2 75-2574134 8/9/2010 May 31 10/15/2011 10/15/2010 0 26-0287313 8/23/2010 Dec 31 5/15/2011 5/15/2010 0 20-4929015 2/28/2011 Jan 31 6/15/2012 6/15/2010 0 20-0224391 11/2/2010 May 31 10/15/2011 10/15/2010 0 20-4724654 3/10/2010 Mar 30 8/15/2010 8/15/2010 1 20-2202287 1/9/2011 Dec 31 5/15/2012 5/15/2010 0 74-3131646 4/28/2009 June 20 11/15/2009 5/15/2010 2 26-2626079 8/4/2010 6/30 11/15/2011 11/15/2010 0 83-0441154 11/3/2010 12/31 5/15/2011 5/15/2010 0 86-1048207 12/29/2010 6/30 11/15/2011 11/15/2010 0 80-0184907 6/2/2010 6/30 11/15/2010 11/15/2010 1 20-4336686 1/18/2011 5/31 10/15/2011 10/15/2010 0 35-2334919 10/9/2010 12/31 5/15/2011 5/15/2010 1 Max no. of missed 990s prior to revocation date PAGE 3 OF 4
Name of PBUSA member EIN of PBUSA member Date joined PBUSA and first obtained 501(c)(3) status Fiscal year Date first IRS Form 990N due IRS revocation date Magnolia 56-2611385 6/9/2010 6/30 11/15/2010 11/15/2010 0 West FFA Hurricane 20-2690844 6/28/2010 6/30 11/15/2010 11/15/2010 0 Athlete & Parents Assoc Newark Band 32-0172104 11/06/2010 7/31 12/15/2011 12/15/2010 0 Boosters Carlsbad HS 65-1281762 8/27/2010 7/31 12/15/2011 12/15/2010 0 Boys Water Polo McDowell 86-1171740 1/29/2011 12/31 5/15/2012 5/15/2010 0 Boys LaCrosse CLU Cherokee 43-2058299 8/9/2010 7/31 12/15/2011 12/15/2010 0 Charmer CalAllen 74-2709766 2/1/2008 12/31 5/15/2009 5/15/2010 2 Topcats Goal Club 74-2723591 2/1/2008 12/31 5/15/2009 5/15/2010 2 WT White 75-1651693 3/8/2011 12/31 5/15/2012 5/15/2010 0 Max no. of missed 990s prior to revocation date PAGE 4 OF 4