SPARKS — Hundreds of thousands of small organizations across the country, ranging from memorial scholarship funds to union associations, could lose their nonprofit status with the IRS if they do not meet an October tax filing deadline.

About 325,000 charities are being threatened. Of these, about 1,780 are in Nevada.

“The Pension Protection Act of 2006 (PPA), signed into law on Aug. 17, 2006, is the most sweeping pension legislation in over 30 years and includes a number of significant tax incentives to enhance and protect retirement savings for millions of Americans,” according to a statement from the IRS.

The act also came with a few tacked on provisions that required nonprofits to report to the IRS annually.

According to a statement issued last week, it is now mandatory for nonprofits, other than churches, to file tax returns. They have until Oct. 15 to file the last three years of tax returns or lose nonprofit status.

“We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption,” IRS Commissioner Doug Shulman said in the statement.

Those in Sparks listed by the IRS included the smallest of nonprofits.

Dennis Reetz, the president of the Sparks American Postal Workers’ Union, was unaware that his organization was even threatened.

“I don’t know why we are on that list,” he said. “We file every year for our nonprofit status.”

A small receipt was in Reetz’s hand to prove it.

Small organizations are required to file a 990-N, an eight-question form that, if electronically returned before Oct. 15, will bring the nonprofit back into compliance in the eyes of the IRS.

“In my hands is the receipt, (which says) ‘990-N has been accepted, Wednesday, March 31, 2010, before 6 p.m.,’ ” Reetz read. “ ‘The IRS has accepted e-postcard.’ ”

Others were not so fortunate. Some of the nonprofit organizations on the list had changes in leadership in recent years.

The National Antique Doll Dealers last filed its forms with the IRS when Teri Foley of Sparks was treasurer two years ago. Without formal offices and with the treasurer changing every few years, nonprofit filing has gone by the wayside.

“We change leadership every two years,” Foley said.

The new treasurer lives in Pennsylvania at an address that the IRS does not have on file.

“The list was generated by the end of June and (it’s) a list of those who generally have a filing requirement,” said Raphael Tulino, IRS spokesman for the western region.

The Sparks Fire Department Inc., a nonprofit that has been a vehicle for small fundraisers and Christmas giving to residents in need, was also listed as in danger. However, Sparks Fire Department Division Chief Frank Frievalt said the listing could have been made in error by the IRS.

“I have spoken to the president of Sparks Fire Department Inc. and he is unaware of any change or impending change to the nonprofit status of the group,” he said. “He (the president) will be contacting the IRS to verify the current status of the organization and, if necessary, provide whatever information is needed to maintain its current status. “

He added that the department and its nonprofit arms were aware of the tax change as it applied to the Sparks Fire Department Historical Foundation. However, no further information was available regarding the first nonprofit as of press time.

Tulino added that the charities on the threatened list could be defunct, moved or had changes in leadership. In the end, he said, the IRS just does not know for sure without a filing form.

“Essentially, the list includes exempt organizations that are potentially at risk because they are not in compliance,” Tulino said. “The Pension Protection Act of 2006 made two important changes affecting tax-exempt organizations, effective the beginning of 2007. 

“First, it mandated that all tax-exempt organizations must file an annual return with the IRS,” he continued. “The form 990-N was created for small tax-exempt organizations that had not previously had a filing requirement. Second, the law also required that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status.”

According to the IRS, a “small” organization means the charity has gross receipts of $25,000 or less. For example, the postal union has about 25 members and meets the gross receipts requirement, qualifying with the IRS as small.

Larger charities that missed the past three years of filing deadlines might have to pay a compliance fee of up to $500 if its gross receipts are more than $200,000 per year.

“The compliance fee is required for participation in the VCP (voluntary compliance program, or extension program),” according to the IRS’ website. “The compliance fee is in lieu of taxes, penalties and interest that otherwise would be incurred by reason of non-filing …”

The extension is not available for large organizations that have to file Form 990 or to private foundations.

The revocation of the organization’s tax-exempt status will not take place until the filing due date of the third year, Tulino said.

Sparks nonprofits that have not met IRS's new filing requirement

Actory Inc.

Alcoholic Recovery Center Inc.

Amateur Athletic Union of The United States Pacific

American Postal Workers Union

Ancient And Honorable Order of E Clampus Vitus Of Nevada 1827 Snow Shoe Thompson Chapter

Association for Systems Management Div. 21

Blue Knights Motorcycle Club

Bricklayers Joint Apprentice Committee

Charity Bowl Inc.

Children’s Community Chest

Comstock Council

Electrical Bid Processing Service

Electrical Industry Collective Bargaining and Legal Assistance

Fjordings West

German Shorthaired Pointer Club of Reno

Great Basin Studies Center

Institute of Human Achievement Technology

Irish Mexican Alliance of Nevada

Kristen Wyak Norris Memorial Scholarship Fund Inc.

La Banda De Guerra Mexicana De Nevada

National Animal Protection Association

National Antique Doll Dealers

National Association of Orthopedic Nurses Sierra Nevada Chapter

National Huguenot Society Nevada

Nevada Cosmetologist Association

Nevada Dairy Herd Improvement Association Inc.

Nevada Federation of Postal Clerks

Nevada International Trade Exchange Inc.

Nevada Paleontological Association

North Truckee Ditch Co Reorganized

Northern Nevada Activity Coordinators Association

Northern Nevada Car Club Council

Northern Nevada Joint Sign Apprenticeship Trust Fund

Northern Nevada Labor Temple Association Inc.

Northern Nevada Western Apprenticeship Coordinators Association

Northern Nevada Youth Soccer League

Rail City Striders Track Club Inc.

Ramblin’ Wheels Motorcylce Club Inc.

Sandy Brown Evangelism Inc.

Senior Citizens Aid Society Inc.

Sierra Challenge Athletic Association

Sierra Organ Club

Sierra Prairie Dog Rescue Inc.

Skyfire Showchoir

Spanish Spring Valley Ditch Company

Sparks Centennial Commission

Sparks Civic Theatre

Sparks Fire Department Inc.

Tahoe Center for Living And Learning Inc.

The Golden Guild Inc.

Transformed International

Truckee Meadows Hockey Association

Truckee Meadows VFW Post 3819 Ladies Auxiliary Post

United We Stand Classified Employees

University Family Fellowship

Wildlife Rescue Association Inc.

Young Masters Chess Club Inc.