Politics & Government

New Lenox Non-profits Lose Tax-Exempt Status

Because of a change in federal law, nearly a dozen New Lenox non-profits, some that no longer exist, didn't file necessary paperwork to continue accepting donations.

Nearly a dozen New Lenox non-profits were included in an Internal Revenue Service list of Illinois organizations whose tax-exempt status was automatically revoked due to failure to file an annual return.

The list, released June 8, includes 275,000 agencies that lost their tax status after failing to file a return for three consecutive years. The loss of tax-exempt status means that anyone who makes a donation cannot claim it on the following year’s tax return.

But according to IRS spokesman Michael Devine, in many cases those groups would no longer be accepting donations anyway—they’re probably defunct.

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That was the case for a handful in New Lenox, including the Unlimited Soccer Club Select, which no longer exists but made the list. Others, including "Vintage PAC" and "New Lenox Chapter of the Will" could not be reached.

The New Lenox Mustangs youth football organization, on the other hand, was at least one nonprofit that made the list because of a clerical mistake.

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"It was just a paperwork glitch in the wonderful world of bureaucracy," said Lynn Plarski of the Mustangs. "It's been taken care of now."

Other currently functioning groups, including the American Legion and the Friends of the Park, could not be reached, but also made the list. Here's a look at the nonprofit organizations listed on the IRS release:

  • International Association of Lions Clubs, 1529 Eagle Vista Drive
  • American Legion Auxiliary, 1200 S. Cedar Road
  • New Lenox Mustangs Junior Youth Football League, 335 Carol Road
  • New Lenox Chapter of the Will, PO Box 205
  • Jaf Orphan Wildlife, 420 Sycamore St.
  • New Lenox Hawks Traveling Baseball, PO Box 816
  • Unlimited Soccer Club Select, 345 Wintertree Lane
  • Friends of the Park, PO Box 132
  • Vintage PAC, 1905 Tomahawk Ridge.
  • Illinois Nurses Association, 2877 Cole Lane
  • Illinois Mailers Association, PO Box 279

The automatic revocation stems out of the 2006 Pension Protection Act, which requires most nonprofits to file returns or notices annually. Prior to 2006, many nonprofits weren’t required to file the documents if they took in less than $25,000 in tax-deductible contributions per year. But because the language was buried in the many pages of the law, many groups missed the memo.

Devine said the agency sent out more than 1 million notices to inform nonprofits about the new rule. The IRS list hopes to reach donors and educate them that organizations are no longer eligible to receive tax-deductible contributions.

If a nonprofit is still functioning, however, Devine said it’s possible for them to regain tax-exempt status.

“The best thing they can do is to contact the IRS,” he said. The group can then reapply for tax-exempt status, he said.

For a complete list of Illinois nonprofits included in the automatic revocation, click here.

Editor's note: Portions of this article were used from and .

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