The IRS earlier this month revoked the tax-exempt status of 275,000 non-profit organizations, including several affiliated with USC, that failed to file required paperwork.The Pension Protection Act of 2006 requires that non-profit organizations, which are those that don’t distribute earned money to directors or investors, file an annual report with the IRS to remain tax-exempt. Under the law, organizations that don’t file for three consecutive years lose their tax-exempt status, and 2007 was the first year filing was required.Organizations on the IRS’ automatic revocation list must re-apply for tax-exempt status or they will be required to file a federal tax return and to pay federal income taxes. Additionally, any donations given to organizations that do not regain tax-exempt status will not be tax-deductible for the donors. Donations made before the IRS posted its revocation list are still tax-deductible.The IRS believes most of the 275,000 organizations on its list are defunct, but this is not the case for all the USC groups listed.David Walsh, a professor of psychology and an adviser for Psi Chi, a psychology honors society, said he believes the group’s tax-exempt status was revoked because of confusion on the part of the IRS.“The central office of Psi Chi files the tax exempt status reports for local chapters, and the IRS often fails to cross coordinate those filings,” Walsh said in an email. “I am looking into the matter, but suspect the present notice is an IRS computer operating without supervision.”Other groups say their inclusion on the list was not an error and isn’t a problem.For example, the earth sciences honor society Sigma Gamma Epsilon appears on the IRS’ auto-revocation list, but Josh West, an assistant professor of earth sciences and an adviser for the group, said because Sig Gam doesn’t generate revenue, its tax status is largely irrelevant.“I am not sure the organization was really taking advantage of its tax-exempt status in the first place, so I don’t see the new IRS rules really having much effect in the case of this society,” West said in an email.Most student organizations don’t file for non-profit status, according to Heather Larabee, USC’s assistant dean of students and director of campus affairs. Larabee added that the decision is left up to the individual groups.“It is not that common at all. Many look into the process, but very few follow through with the paperwork,” Larabee said in an email.The groups that do pursue tax-exempt status as non-profits often do so because they want to be able to collect donations or because they are part of a larger national organization, as is the case for Psi Chi and several other fraternities and sororities that file as non-profits.Several other USC-affiliated organizations ended up on the IRS’ list: the Intersorority Parents Council, SC Paw, the Staff Retirement Association, dental honors society Omicron Kappa Upsilon and medical honors society Alpha Omega Alpha. SC Paw appears to be defunct; the Staff Retirement Association is in the process of filing for reinstatement as a non-profit, according to Janette Brown, the executive director of USC’s Emeriti Center. Representatives from the other groups were unavailable for comment.For groups looking to regain their non-profit status, the IRS is planning to update its revocation list monthly. Organizations that earn less than $50,000 annually can also apply for transitional relief, which decreases the cost of re-applying for tax-exempt status.
talkSPORT’s Drivetime and live football presenter Adrian Durham is reporting on the European Championship and every day he takes you behind the scenes in France…Great day! One of those days you just love when you’re doing my job. Nigel Adderley and I walked to England’s training ground in Chantilly this morning, a beautiful walk, only 10 minutes, but when we got there we were told we had to take a 15 minute detour for security reasons, despite being accredited. It’s a frustration with England in tournaments, which will become a bit clearer later on.The training session was good to watch. Raheem Sterling seemed in good spirits, Roy was in talkative mood with the press, and Jack Wilshere scored some cracking goals. Adrian Durham diary I recorded an interview with The Sun football writer Charlie Wyett, who I’ve known for over 20 years, about why the press were critical of Hodgson. I don’t share the negativity they’ve splashed, but I think there are problems Roy has created for himself – Kane on corners, six changes, resting Rooney etc.As I made my way from the training ground to interview Wayne Rooney via the hotel, I saw a family of England fans at the café by the England team hotel, and the dad was carrying a football. He clearly wanted it signed for his kids, and as I passed by I wondered if it would get signed. Would that fan get close enough to the England camp? Security is tight, but restrictions on the players are OTT in my opinion. Could I have helped? Possibly, but I risk talkSPORT’s access if I start doing things like that. I’d love to get all sorts of shirts and balls signed for people and in the past I have helped out, but at a tournament it’s about being professional above all else, I’m afraid, and access is not always easy or guaranteed, despite media outlets paying a substantial amount for rights and UEFA rules obliging Associations to give time and access. It’s a difficult thing to get right when the main focus should be on the football.Then it was off to interview the skipper Wayne Rooney. Let me tell you how it works: the player will train, then shower and change, then do a press conference you all see on Sky Sports News, then get grilled by the newspaper guys, then come for a 1-on-1 interview with talkSPORT and 5 Live who take it in turns, as equal rights holders, to go first.So you can imagine sometimes that after going through all of that some players might be tired, or annoyed at some of the questions, or just keen to get back to the hotel to relax as they walk into the radio room. The truth is that most of them, including the captain today, relax once they sit down with us. Sometimes they open up a bit as Rooney did today about how ridiculous it is for some people to think that just because he is captain he MUST be selected in the starting line-up. Good stuff from Wayne, who has grown and matured into an articulate, thoughtful and intelligent man. 5 Form there it was a rush back across town to our studio for the show. It was a lively debate about Roy Hodgson, and my co-host Alvin Martin was very supportive of the England manager. I was a touch more cautious. We had some very good callers, including Welsh and Irish. Daniel Gabbidon has been working with talkSPORT at these Euros and his interview with Gareth Bale was a seriously good listen.A wonderfully rare steak later, I was in bed watching live coverage of the Brexit result. Fingers crossed… 5 5 5 5