Helpers Community Inc. must pay the San Francisco Office of the Assessor-Recorder approximately $31,000 in back taxes for misrepresenting the use of properties the charity owns around Golden Gate Park. The nonprofit was founded in 1953 to assist people with developmental disabilities, including providing residential care support. They have received about $100,000 in property tax exemptions since 2003 for this use. However, city officials recently found that the charity ended its residential services in 2002 and has been using the properties for storage and a high-end fashion resale boutique instead.
Under state law, the city can and will only seek back payment for the last four years of unpaid taxes. The charity must pay the approximately $31,000 due before it can contest the assessment administratively, but it can continue to operate as a charity - the IRS is the regulator of nonprofit status.
Whether you are an individual taxpayer, business owner, or responsible for tax payments of an organization, it is important to have accurate advice concerning your tax obligations, reporting requirements, and best practices. Contact us to speak to an attorney today if you need assistance getting into compliance.
Read the full news story here: http://www.sfchronicle.com/bayarea/article/S-F-charity-ordered-to-pay-back-taxes-weighs-10990796.php