Tax Exempt Organizations' deadline is a week from now

Many tax exempt organizations who did not keep up with the required 990 filings will lose their tax exempt status if required actions are not taken by 10/15. Losing tax exempt status will trigger a lot of unintended consequences, many of which would be expensive to fix. Expensive professional help would be needed and money wasted. IRS has published a list who are out of compliance and Joe Fulton posted a blog.

In recent years, congress has forced tax exempt organizations to make details of their finance and support and activities available for public, courtesy of Internet.

One of the requirements to prevent an organisation to be classified as a private foundation, with all its compliance and other complications, is that the public support should be 33-1/3% or more of its receipts.

When I was accidentally looking at the 990 of Krotona, I found that the public support is slowly dropping year after year and in a couple of years it may go below this level and trigger possibly the consequences of making it a private foundation.

Since this should be a serious matter for any theosophist (many theosophists routinely receive solicitation of donations from krotona), I notified the head of krotona by email and snail mail.

After several days, I got a curt email that they know of it and the email had no individual's name attached. The head has not yet acknowledge my snailmail.

Another surprise was that krotona does not use a CPA or tax attorney to prepare the 990; may be they are trying to save money by not using a CPA or tax attorney. May be those responsible for the 990 may not know what a CPA is.

When Krotona was launched, it was meant to be the heart of TSA and a vibrant center. A visitor to krotona made a comment to me that it looks like a retirement community with many octogenarians and may be they all will be bequeathing the left over assets to TSA/Krotona when leave the physical world. I am sure Besant and her supporters who built Krotona is turning in their graves looking at the current situation.


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Comment by M K Ramadoss on October 20, 2010 at 8:18pm
I will keep my fingers crossed. Would not be surprised if there is another reprieve. There would be pressure from congress and since no real money is involved here, an extension of time is likely. Let us keep tuned.

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Comment by M K Ramadoss on October 9, 2010 at 9:42pm
Thanks for your comment.

While it is not my full time area of expertise, I have dealt with tax exempt issues for a long time - nearly three decades.

As recently as yesterday, I had to file the voluntary compliance application for a small TE organization with a fee of just $100 so that they continue their TE status without trouble.

The simple philosophy of every professional dealing with TE organizations is to avoid trouble with IRS and avoid private foundation status which is a can of worms.

What amazed me was that that the head of krotona did not even care to acknowledge my letter sent by snailmail nearly two weeks ago and one wonders if this perhaps may be the result of an attitude 'who is this theosophist to butt into OUR matters.'!!!

By the way, even the treasurer of krotona is not an accountant and the 990 return is prepared by a EA.

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