The following list of accomplishments of the Exempt Organizations division of the IRS (EO) in 2006 is excerpted (and slightly modified) from the IRS Letter to colleagues, members of the press and taxpayers dated as of November 7, 2006: Political Campaign Activity. EO responded to increased complaints about political...
IRS & FEDERAL TAX ISSUES
IRS Exempt Organizations Division 2007 Priorities
The following items are among the priorities of the IRS Exempt Organizations division (EO) for FY 2007: 1. New Projects: implementing new legislation gaming employment taxes telephone excise tax refund community foundations college and university unrelated business income tax (UBIT) 2. Form 990 redesign project. EO’s goal is to...
Chronicle Reports IRS Taking a Tougher Stance on Charities
The Chronicle of Philanthropy (October 12, 2006) reports that the Exempt Organizations (EO) division of the IRS has added employees and shifted its approach to focus on greater enforcement. Among the observations from the Chronicle: In the past five years, the EO division has added about 100 full-time employees,...
Starting a Nonprofit: Delays in Processing Federal Tax-Exemption Applications
The Internal Revenue Service recently published a notice "Where is My Exemption Application?" in response to the delay caused by a backlog of exemption applications. The notice details the manner in which applications are processed: The Process: Upon receipt, exemption applications accompanied by the required user fee are initially...
New Form 990 Disclosure Requirements
Congress enacted two important changes that went into effect on August 17, 2006: Form 990-T, used to report unrelated business income tax, has been designated a public record (for 501(c)(3) organizations only). Parent organizations that control subsidiary corporations (as defined by IRC Section 512(b)(13)) have new disclosure requirements on...
IRS Determines NAACP Did Not Violate 501(c)(3) Prohibition Against Political Campaign Activities
On August 31, 2006, the National Association for the Advancement of Colored People (NAACP) released a statement of its receipt of a letter from the IRS informing the NAACP that the IRS had concluded its investigation of the organization’s activities with a finding that the NAACP did not violate...
Form 990 – IRS Resources
The IRS has the following resources available with respect to Form 990: FAQs for TY2005 Form 990 Returns (NEW!) Instructions for Form 990 and Form 990-EZ Instructions for Schedule A (Form 990 or 990-EZ) Tips and Tricks for Completing Form 990 Information Return phone forum script (NEW!) Common Errors...
Form 1023
Form 1023 (Rev. October 2004) * Effective July 1, 2006, the fee for initial applications for exemption under Section 501 will increase from $150 to $300 for small organizations (annual gross receipts not over $10,000), and from $500 to $750 for larger organizations (annual gross receipts over $10,000). The...
Form 990 – Lorman Seminar Presented by Terry Miller
I attended an excellent presentation on "Form 990: Critical Issues" given by nonprofit financial management consultant Terry Miller for Lorman Education Services on April 18, 2006. Terry’s coverage of Form 990 included the following areas: Tax Overview for 501(c)(3) Public Charities – Regulatory Viewpoint Form 990: Procedural Overview Filing...
Form 990
Form 990 – 2005 Form 990-EZ – 2005 Form 990-PF – 2005 Form 990, Schedule A Form 990, 990-EZ, 990-PF, Schedule B 2005 Instructions for Form 990 and Form 990-EZ 2005 Instructions for Form 990 and Form 990-EZ, Schedule A