I just received an automatic alert about recent IRS 501(c)3 revocations. According to the IRS, Metropolitan Financial Management Corporation which was doing business as Auriton Solutions had their charitable 501(c)3 tax status revoked in October 2011. – Source
Their last public tax return listed Tiffany Worley as president through 7-2010 and then replaced with Bill Shell as interim CEO.
Something is clearly going on with the Auriton Solutions website at auritonnew.org. It now goes to this Russian page?
The last tax return sheds some light on the tax status issue. It says, “The organization has been undergoing an Internal Revenue Service (IRS) audit since May 2004. In September 2005 the organization received an examination report, from the IRS related to the years currently under audit (3002, 2002, and 2001). This report of examination proposed the revocation of the organizations tax exempt status under Internal Revenue Code 501(c)(3) retroactive to January 1, 2001. The organization believes it always had operated within the guidelines of the Internal Revenue code section 501(c)(3) and, therefore has filed an appeal with the IRS on this proposed action. The outcome of this appeal and the proposed revocation is indeterminable at this time.
If the organization should lose in its appeal, and a final revocation letter is issued, the IRS position is that the organization would be taxed as if it was a taxable corporation retroactive to January 1, 2001. The ability of the IRS to retroactively revoke the organization’s exempt status is also being appealed by the organization. The potential estimated tax liability from January 2, 2001 to August 31, 2010 would be approximately $?46,000. The organization requested a technical advice memorandum from the IRS in 2009 to determine the effective data of the revocation. Management believes that they will prevail in having revocation effective September 29, 2005, rather than January 1, 2001. The organization also firmly believes they have complied in all material respects for the IRS requirements for credit counseling agencies.”
What makes this revocation interesting is that it sheds some light on the fact other currently operating non-profit credit counseling agencies may be facing a similar fate from audits that began in 2004 or 2005. I have no list of entities still facing a possible revocation as a result of the audit.
I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.