IRS Publication 1828 (last revised August 2015), Tax Guide for Churches and Religious Organizations, explains the benefits and the responsibilities under the federal tax system for churches and religious organizations. Here is a list of the topics discussed: Tax-Exempt Status Jeopardizing Tax-Exempt Status Unrelated Business Income Tax Employment Tax...
IRS & FEDERAL TAX ISSUES
IRS Releases Instructions to Redesigned Form 990
On August 19, 2008, the IRS released the revised instructions to the redesigned Form 990, which must be filed starting with tax years ending December 31, 2008. Click here for the press release. Click here for the instructions. Click here for three background documents related to the redesigned Form...
IRS Proposed Rules on Substantiation and Reporting of Charitable Gifts
On August 7, 2008, the IRS published proposed regulations generally implementing changes to the substantiation and reporting rules for charitable contributions resulting from the American Jobs Creation Act of 2004 and Pension Protection Act of 2006 (PPA). Among other things, the proposed regulations implement the recordkeeping requirements imposed by...
Re-embracing the Commensurate Test
According to the Chronicle of Philanthropy (May 13, 2008), the IRS, in a recent private-letter ruling, denied a tax exemption to an organization for not spending enough of its money on charitable programs. Although the recipient’s identity was not released, the organization is believed to be the National Foundation...
TE/GE Commissioner Speaks at Georgetown Law Center
This past April, Steven Miller, Commissioner of Tax Exempt and Government Entities (TE/GE) for the Internal Revenue Service spoke at Georgetown law school regarding nonprofit governance and management. Mr. Miller first addressed governance issues, which he believes cuts across virtually everything the IRS sees and does in its work....
Draft Instructions to 2008 Form 990 Released for Comment
The IRS released draft instructions to the 2008 Form 990 on April 7, 2008 and is seeking public comments on the draft. The instructions are for the redesigned Form 990 that organizations will file for their 2008 tax year (returns filed in 2009), which was released in final form...
Final 501(c)(3) and 4958 Regulations Released – Part II
The IRS released final regulations that clarify (i) the substantive requirements for tax exemption under section 501(c)(3) of the Internal Revenue Code; and (ii) the relationship between the substantive requirements for tax exemption under section 501(c)(3) and the imposition of section 4958 excise taxes on excess benefit transactions. The...
Final 501(c)(3) and 4958 Regulations Released – Part I
The IRS released final regulations that clarify (i) the substantive requirements for tax exemption under section 501(c)(3) of the Internal Revenue Code; and (ii) the relationship between the substantive requirements for tax exemption under section 501(c)(3) and the imposition of section 4958 excise taxes on excess benefit transactions. The...
IRS e-Postcard (Form 990-N) Disclosure Site
The IRS has a new page on its website allowing for visitors to conduct an e-Postcard search. Click here for the search page. Small tax-exempt organizations whose gross receipts are normally $25,000 or less may be required to electronically submit the e-Postcard, also known as Form 990-N. An IRS...
Form 990-N (ePostcard) Up and Running
Charities that qualify may now file Form 990-N (also known as the ePostcard) online for tax years ending on or after December 31, 2007. The due date for 2007 calendar year filers is May 15, 2008. Click here to file Form 990-N online. This site is hosted by the...