By NEO Law Group
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 ยง 501(c) of the Internal Revenue Code (Code) may be obtained on a group basis for subordinate organizations affiliated...
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...
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...
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...
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...
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,...
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...
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...
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...
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...