A few weeks ago, I was interviewed by a reporter for CCH, a leading legal publisher, about Form 990-N. PUBLICATION UPDDATE: The article in which I am quoted appears in Federal Tax Weekly (November 21, 2007). Here is a transcript: Q: What is your opinion on the IRS’s efforts...
IRS & FEDERAL TAX ISSUES
Revised Form 990 – Comment on Wiki
The National Center for Charitable Statistics and Guidestar have created a wiki for those who would like to view or add comments with respect to the redesigned Form 990, which is currently in the discussion draft stage. This is a nice opportunity to give your input on the draft...
IRS Commissioner’s Letter to Sen. Grassley
IRS Acting Commissioner Kevin M. Brown’s letter to Sen. Charles E. Grassley dated June 28, 2007 responds to the Senator’s request for information about compliance issues within the responsibility of the Tax Exempt and Government Entities Division of the IRS. While the letter concentrates on compliance issues, Brown emphasizes...
IRS Exemption Application Procedures Updated
Earlier this month, the IRS issued Rev. Proc. 2007-52 setting forth procedures for issuing determination letters and rulings on the exempt status of organizations under Sections 501 and 521 of the Internal Revenue Code (IRC), with certain exceptions. These procedures also apply to revocation or modification of determination letters...
The E-Postcard: A New Filing Requirement for Small Exempt Organizations
From the IRS website: Beginning in 2008, small tax-exempt organizations that previously were not required to file returns may be required to file an annual electronic notice, Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ. This filing requirement applies to tax...
IRS Form 990
The Instructions for Form 990 and Form 990-EZ, and the Instructions for Schedule A (Form 990 or 990-EZ) incorporate significant changes to address legislation enacted in 2006. Organizations that sponsor donor-advised funds or that have controlled entities must pay particular attention to the changes. In addition, supporting organizations must...
IRS EO Executive Compensation Report
The IRS released Parts I and II of its Report on Exempt Organizations Executive Compensation Compliance Project earlier this month. Part I involved compliance check letters sent to 1,223 organizations. Part II involved examinations of 782 organizations. Among the findings of the Report: Significant reporting issues exist. Over 30%...
Group Exemption
UPDATE (6/16/20): IRS Notice 2020-36 This notice contains a proposed revenue procedure that sets forth updated procedures under which recognition of exemption from federal income tax for organizations described in § 501(c) of the Internal Revenue Code (Code) may be obtained on a group basis for subordinate organizations affiliated...
Free Online IRS Training
The IRS is now offering interactive online workshops designed for small- and mid-sized charitable organizations on the following topics: Tax-Exempt Status – How can you keep your 501(c)(3) exempt? Unrelated Business Income – Does your organization generate taxable income? Employment Issues – How should you treat your workers for...
New Exempt Organization FAQs on IRS Website
The IRS recently released 7 new FAQs about Issues of Interest to the General Public about Exempt Organizations. I found one particular answer not too helpful: Are contributions to an organization that that has not received an exemption determination letter deductible (for example, while an application is pending)? "If...