English addresses tax status of YMCA
HERMITAGE, Pa. -- U.S. Rep. Phil English of Erie, R-3rd, has introduced legislation aimed at protecting the pensions of more than 85,000 YMCA retirees from improper taxation.
English, speaking at the Shenango Valley YMCA on Monday, said he received requests from a number of YMCAs asking him to introduce legislation to ensure that their tax status remains that of a church organization, which receives different tax treatment for retirement funds than other nonprofit agencies.
The YMCA is strongly connected to the Protestant church, English said.
He said the Internal Revenue Service does continuous audits of the organization's tax status, which results in heavy legal costs for the YMCA.
It's time to clarify the organization's tax status now, not later when retirement funds could be wiped out, English said.
IRS audits have questioned the Young Men's Christian Association's church status designation for tax purposes, he said, adding that his legislation would clear up the issue by stipulating that the YMCA's retirement fund is to be taxed as that of a church organization.