The Internal Revenue Service has revoked the 501 ( 3 ) non-profit status of the Hi-Desert Playhouse Guild in Joshua Tree, an automatic revocation that Playhouse management says was the result of illness, an IRS glitch, time zones, and lack of awareness.
The revocation posting by the IRS said its non-profit status was being revoked because the Playhouse had not filed the required E-form 990 return for three years. The last tax filing on record is labeled 2015 but is actually its 2014 filing, starting the cascade of confusion.
Playhouse President Jarrod Radnich told Z107.7 news that the domino effect that resulted in the revocation started when he became ill and did not file in time for 2016. An extension was granted but because of the difference between Eastern and Pacific time the filing was received late, requiring a physical copy to be filed, something Radnich said the Board only became aware of recently.
With the 2016 still pending, subsequent filings were rejected, again without the Board knowing.
Finally, after three years of rejected filing, the automatic revocation kicked in. Radnich said they are currently working with the IRS to retroactively reinstate the exemption and are submitting the previously rejected years with a request to reinstate on an expedited basis.
