GOUVERNEUR — The Internal Revenue Service has retroactively reinstated Gouverneur Rescue Squad as a tax-exempt organization.
Director of Operations Mark A. Deavers received a letter Friday informing the squad of the news. The return of tax-exempt status is retroactive to May 15, 2013.
“We’re very happy and we thank the community for its continued support,” Mr. Deavers said.
The squad lost its tax-exempt status because it failed to file tax returns for three consecutive years, beginning with 2010. Afterward, the squad revamped its policies and procedures to ensure its fiscal responsibilities are met and had Crowley & Halloran CPAs, Watertown, file the errant tax returns for 2010, 2011 and 2012, along with an application for retroactive reinstatement of its nonprofit status.
“Operationally, nothing changed,” Mr. Deavers said.
The return to being a recognized nonprofit means that donations are tax-deductible to the date of reinstatement. The loss of tax-exempt status affected the number of donations received over the past year, which Mr. Deavers said was not surprising.
“When we received donations, we would send back a letter telling them our tax-exempt status was revoked and they could have their money back if they wanted,” he said.
Those who did send donations usually did not request them back, he said.
The loss of tax-exempt status also meant the squad had to pay sales tax on purchases. Over the year, that amounted to several thousand dollars, but the squad expects to get that back because the exemption is retroactive, Mr. Deavers said.