I. Enhancing Enforcement of the Tax Law A. New Compliance Tools National Research Program EO Research and Compliance Initiative (Colleges and Universities) Voluntary Compliance Program B. Donor Control and Non-cash Contributions Section 509(a)(3) Supporting Organizations Charitable Trusts Deconstruction Conservation Easements Successor Member Interests C. Form 990 Redesign D. Other...
IRS & FEDERAL TAX ISSUES
IRS Exempt Organizations Division 2007 Accomplishments
I. Enhancing Enforcement of the Tax Law A. Implementation of the Pension Protection Act of 2006 Announcement 2006-93: procedures by which 509(a)(3) organizations may request a change in their public charity status to 509(a)(1) or 509(a)(2). Notice 2006-109: discusses new provisions affecting supporting organizations (SOs), donor-advised funds, and private...
IRS Releases 2008 Form 990 (Final Redesigned Version) – December 20
On December 20, 2007, the IRS released the 2008 Form 990, the annual information return for public charities and certain other tax-exempt organizations. The final version, like the discussion draft released for comment in June, contains a core form and multiple schedules. However, several changes were made in response...
Form 990-N (E-Postcard) – Interview with CCH
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...
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%...