Nitro CVB working to get tax paperwork properly filed
CHARLESTON, W.Va. -- The Nitro Convention and Visitors Bureau has been operating without tax-exempt status since December, but its treasurer is working to resolve the situation and does not believe the lapse will cause problems.
Treasurer John Young met with an Internal Revenue Service agent Thursday morning to discuss the issue. Young said he gave the agent the bureau's 990 forms, which are essentially a tax return for a non-profit agency.
The matter should be quickly resolved now that the paperwork has been turned over, Young said.
"She said it shouldn't be a problem," he said. "It should be fixed soon."
Young is also sending copies of the 990 forms to the IRS via certified mail to ensure that the paperwork is received.
Both Young and Nitro Mayor Dave Casebolt said they received notification of the revocation on Monday.
Casebolt is unsure if IRS notification letters had been sent elsewhere prior to Monday.
Young accepted responsibility for the revocation.
The certified public accountant said he was unaware that a convention and visitors bureau was required to submit 990 forms to the IRS to keep its non-profit status.
"I should have filed the forms," he said. "I just didn't think I had to."
"I thought since we were a governmental unit that we didn't have to file with the IRS."
A 990 form outlines an agency's revenue and tells how the money is spent.
Young contacted the IRS as soon as he received the letter on Monday, he said.
Young has turned in 990 forms for 2009, 2010 and 2011, he said. The Nitro Convention and Visitors Bureau first started doing business in 2009, he said.
The agency operates on a budget of about $118,000 a year, he said. About 95 percent comes from the hotel/motel tax, Young said. The rest comes from fundraising.
Young pointed out that the State Auditor's Office audited the town of Nitro and all of its agencies, including the visitors bureau, in 2011 and no financial shenanigans had been found.
"But that doesn't mean I shouldn't have filed the forms," he added, "because I should have."
Casebolt believes the problem will be corrected quickly.