Thirty-two area nonprofits have lost their tax-exempt status, according to the Internal Revenue Service.
The agency last week released a list of 2,200 Orange County nonprofits, including 31 in Laguna Beach and one in Emerald Bay, that have automatically lost their nonprofit status because they did not file financial statements for three years. All nonprofits have been required to file financial information since 2007.
"We were never notified of any change, and we filed the short form that we had been advised was permissible," said Richard Schwarzstein, legal advisor to the Sister Cities Committee of Laguna, which was on the list. "We will have to check to clarify our status. "But we are certainly not going to lose our tax-exempt status over a form, and we will deal with it. This is just bureaucracy at work."