Reader says Allowing people and companies to continue to deduct their donations allowed them to commit fraud for years without realizing it
The IRS site says that as of March 15, 2011, it revoked the tax-exempt status of organizations that had not filed for AT LEAST 3 consecutive years. Since taxes are not due until April, that means 2010 didn’t count. The three years would have been 2007-09. But there is no way of knowing when they last filed properly. Even RBSA may not know, since the CPA who fled without warning was apparently the only accountant in the state.
This is worse than sloppiness. Allowing people and companies to continue to deduct their donations allowed them to commit fraud for years without realizing it. A group too busy “helping the kids have fun” to control its finances should not be sitting on giant nest eggs.
Allowing your organization’s 501 (c) 3 status to lapse is irresponsible by itself. Not informing your contributors of this and forcing them to amend their tax returns is a complete failure of leadership.
Mr. Albano is a one issue candidate and he’s not even really on top of his one issue is he.
What about his lawyer friend Seavers?
The RBSA is looking like a post-for-life organization. Aren’t Mr. Seavers’ children in their 20’s and 30’s?