The IRS has issued revised procedures for the issuance of ruling letters and information letters on matters under the jurisdiction of the Tax Exempt and Government Entities Division (TE/GE): Rev. Proc. 2009-4. According to the IRS, most of the changes to Rev. Proc. 2008-4 involve minor revisions, such as...
IRS & FEDERAL TAX ISSUES
Tax-Exempt Organization Complaint Form
The IRS has a form for issuing a complaint of a tax-exempt organization: Form 13909 (August 2007). The following violation types are included in a checkbox format: Directors/officers/persons are using income/assets for personal gain Organization is engaged in commercial, for-profit business activities Income/assets are being used to support illegal...
IRS 501(c)(3) Revocation Letter
On September 16, 2008, the IRS released Determination Letter 200851031 – a revocation letter of 501(c)(3) exempt status for the applicant organization’s failure to pass both the organizational and operational tests required of 501(c)(3) organizations by the Department of the Treasury. Regarding the organizational test, the IRS cites the...
Final 2008 Form 990 Released
The IRS has now finalized the 2008 Form 990 and Form 990-EZ information returns for tax-exempt organizations. As noted in previous posts, the Form 990 has not undergone major revisions in almost 30 years. According to IRS Commissioner Doug Shulman, "he revised form will give the IRS and the...
ABC’s for Exempt Organizations – from the IRS
The IRS article “ABC’s for Exempt Organizations” features links that a founder or manager of a new organization may find helpful on subjects including: Life Cycle of an Exempt Organization: Helpful information about points of intersection between tax-exempt organizations and the IRS, including access to explanatory information and forms that...
990’s for Real People – Presented by Eve Borenstein
I had the pleasure to attend a day-long Alliance for Justice program last week on the new Form 990 presented by Eve Borenstein, a highly respected exempt organizations attorney who I consider the go-to person on this subject. Here are some of the highlights of the introductory portion of the program:...
IRS Exempt Organizations Division 2009 Work Plan
Improved Service to Achieve Voluntary Compliance Preparing and Helping to File the Form 990 (speeches, workshops, tax forums) Form 990-N (e-Postcard) Guidance (including proposed regulations on (i) new requirements for supporting organizations, and (ii) excise taxes on donor advised funds; and final regulations on excise taxes on prohibited tax shelter...
Tax and Employment Issues Affecting Nonprofits – November 14, 2008
Yesterday, I filled in for an IRS speaker at a continuing legal education program on "Tax and Employment Issues Affecting Charitable Nonprofits" at the Bar Association of San Francisco. Rebecca Benhuri, an associate attorney with Jackson Lewis LLP, focused on the employment issues, and I covered the following IRS areas of interest: Governance...
IRS Eliminates Advance Rulings Process
On September 8, 2008, the IRS issued new regulations that eliminate the public charity advance ruling process. IR-2008-102, “IRS Streamlines Application Process for New Tax-Exempt Organizations,” stated in part: The Internal Revenue Service and the Treasury Department today issued new regulations that do away with the so-called advance rulings...
Disaster Relief (2008 Update)
For charities and contributors involved in disaster relief efforts, the IRS website includes an article that provides several helpful resources. The FAQs address the following areas: Providing relief through an existing charitable organization. Creating a charitable organization to provide disaster relief. Providing relief to employees of particular employers. Charitable...