Moriarty Chamber Tax Exempt Status Remains Unclear
by John Weckerle
In an August 13 letter to the editor of The Independent, Moriarty Chamber of Commerce president Lee Anne Tapia defends the role of Lee Obarr in Chamber activities. We will leave the subject of Mr. Obarr for another time. Ms. Tapia relates that the Moriarty Chamber had been operating “illegally” – reputedly, in violation of state and federal tax laws – for years, and that Mr. Obarr was instrumental in the “discovery” of the situation.
We find ourselves curious about this statement. Two very credible sources have suggested that the situation was brought to the attention of the IRS by a third party, and that the Moriarty Chamber may be facing the possibility of having to pay substantial fines and back taxes. Unfortunately, we cannot confirm or refute this directly. In a July 22 letter, IRS Exempt Organizations Specialist Joseph Belpulsi states “The Internal Revenue Code includes taxpayer privacy provisions…Accordingly, we cannot disclose what action, if any, the IRS has taken or may take…” with regard to examination of the status of any given organization. The State of New Mexico has similar provisions. That means that the only information we are likely to receive about the IRS problems is what the Chamber releases.
Ms. Tapia also states: “…and now your Moriarty Chamber of Commerce is operating as it should with a valid tax ID number, and as a valid 501-C6 non profit organization.” In an August 26, 2008 telephone conversation, an IRS representative named Ms. Mitchell informed us that the IRS had no record of approval of an application for tax-exempt status for the Moriarty Chamber of Commerce or for a reputed – but as yet unconfirmed – alias, the Greater Moriarty Economic Development Association.
The legal status of the Moriarty Chamber as an organization in New Mexico is similarly unclear. A search of the New Mexico NMPRC corporations database provides no results for the Moriarty Chamber of Commerce, suggesting that the organization may never have been incorporated under that name. Unconfirmed rumors have circulated in recent months that the organization might be operating under another name, the Greater Moriarty Economic Development Organization. The database does contain an entry for the Greater Moriarty Economic Development Association, whose makeup appears to be similar, if not identical, to the organization calling itself the Moriarty Chamber of Commerce. It is unclear whether these are the same organization and, if so, how the organization could operate legally under one name and be registered under another – or, for that matter, why it should choose to do so.
It would certainly be in the Chamber’s best interest to openly and honestly disclose its status and discuss the issues it is facing; as noted above, the whirlpool of rumor and innuendo is substantial, and can only serve to damage the Chamber’s reputation. We invite the Moriarty Chamber to clarify its status by providing us with a copy of its letter from the IRS approving their status as a 501(c)(6) organization (which we will be glad to post here upon request), and to explain the other apparent inconsistencies and points of confusion regarding its status both as a tax-exempt organization and a corporation in the State of New Mexico.
Anyone can verify the tax exempt status of an organization by calling the IRS at 1-877-829-5500.