Councilman David G. Greenfield reminds local non-profits to immediately renew their tax exempt status with the NYC Department of Finance (DOF) to avoid being issued property tax bills. Several years ago the DOF changed its policy on non-profit tax exemption and now requires all non-profits to file annually to maintain their exempt status. This has caused much confusion for local congregations, private schools and other community institutions that previously had enjoyed uninterrupted tax-exempt status for years after initially filing as a non-profit with the City of New York. Each year since this new policy was implemented Greenfield’s office has helped countless non-profits that missed the filing deadline navigate the renewal process, which can be quite lengthy and result in DOF issuing tax bills. The deadline for non-profits to file for exemption for the upcoming 2015/2016 tax year was Monday January 5th, 2015 but the DOF has assured Councilman Greenfield that they will offer an extension to non-profits if they act immediately.

“It is essential that all non-profits file for tax-exempt status for the next fiscal year right away to avoid unwanted tax bills and other headaches,” said Councilman Greenfield. “If you miss the deadline it is a very difficult and timely process to try and convince the city that you are eligible. In some cases, non-profits have faced tens of thousands of dollars in unnecessary fees. Please call us if your organization has any questions about this process.”

Filing for renewed tax-exempt status is easy. Applications may be submitted online. All non-profits should have received letters from the DOF detailing how to renew. If any organization has not received such a letter it’s likely that the DOF does not have their correct contact information on file. Any group that has not received notice is encouraged to immediately contact the DOF by either calling 311 or emailing their non-profit unit at [email protected] for assistance.

If a non-profit fails to renew its tax exempt status they will be issued property tax bills starting in July 2015. If the non-profit fails to correctly challenge and respond to these bills the DOF may place a lien on the property for unpaid taxes. Removing a tax lien against a non-profit is nearly impossible so it is incredibly important that all non-profits carefully maintain their tax-exempt status each year and avoid what could potentially become an extremely costly problem.

The Department of Finance details how non-profits can apply for tax-exempt status online. Click HERE for the website. Although the deadline to renew was January 5, 2015 the DOF is giving non-profits who still have not yet renewed a small window to submit all necessary documents to maintain their tax-exempt status. The DOF will send a notice by mail to all non-responsive organizations with more details.

Any organization with questions about this process is urged to contact the Office of Councilman Greenfield right away for details on how to renew their tax-exempt status. Greenfield’s staff is experienced in these issues and ready to help. The Councilman’s office can be reached at [email protected] by email or by phone: (718) 853 2704.

(YWN Desk – NYC)