JACKSON HOLE, WYO – Center for the Arts announced today that the Internal Revenue Service has revoked its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
The effective date of the revocation is March 11, 2019, when the IRS first posted the public notice. The reason for the revocation is the IRS does not have all The Center’s returns on file. The Center disputes this finding, saying it believes all of its annual informational returns have been filed on time.
IRS policy, however, is to automatically revoke exemption for organizations that fail to file for three consecutive years. As soon as The Center became aware of the revocation, it began to work diligently with accountants and legal counsel to reinstate its tax-exempt status. The Center says it is also implementing a rigorous new system of oversight to ensure that future returns are filed on time.
“The Center takes its mission and its many stakeholders very seriously. We are working hard to restore our appropriate tax-exempt status as soon as possible. With the support of the Community Foundation, it is business as usual for all of our programs and productions. The Center will continue to operate as a vibrant hub of our creative community,” said David J. Rothman, Center President and CEO.
Reinstatement can often take several months. In the meantime, The Center expressed deep gratitude to the Community Foundation of Jackson Hole, which has agreed to establish a designated fund that will handle all gifts and grants to The Center until the IRS officially reinstates its tax-exempt status.
Katharine Conover, President of Community Foundation of Jackson Hole said, “The Center is such an important part of our community, and The Community Foundation is pleased to be able to support their mission in this capacity.”
The Center’s tax status has no impact on the resident organizations that lease space from The Center. The resident organizations are independent nonprofits whose tax filings are entirely separate and unaffected by The Center’s IRS status.