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...
IRS & FEDERAL TAX ISSUES
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
IRS Investigation – Illegal Political Activity
The Internal Revenue released a report on February 24, 2006 summarizing its 2004 Political Activity Compliance Initiative ("PACI") project which focused on the political activity by charitable tax-exempt organizations during the 2004 election cycle. The press release issued in connection with the Report stated that "early three-quarters of 82...
Evans & Rosen on Unrelated Business Income Tax
On February 3, 2006, I attended a CompassPoint program on unrelated business income tax (UBIT) presented by Cherie Evans and Barbara Rosen of Evans & Rosen. Cherie and Barbara are colleagues of mine in the practice area of exempt organizations or nonprofit law. Both spent part of their legal...
Public Support Tests- Unusual Grants
An organization exempt under IRC 501(c)(3) may qualify as a public charity if (1) it normally receives one-third of its TOTAL SUPPORT from sources that qualify as PUBLIC SUPPORT (One-Third Support Test); or (2) it meets the Facts and Circumstances Test, including the Ten-Percent-of-Support Requirement. PUBLIC SUPPORT includes: Direct...
Public Support Tests – Public Charities
You'll find a discussion of the general advantages of classification as a public charity rather than a private foundation in a January 1, 2005 post. This post will discuss how charitable organizations receive recognition as a public charity under IRC Section 509(a)(1). Background: All 501(c)(3) organizations are categorized as...
Vehicle Donations
IR-2005-149, December 22, 2005 WASHINGTON – Internal Revenue Service officials today reminded taxpayers that they must obtain a charity’s written acknowledgment of their vehicle donation before they claim a deduction for their donation. For deductions of more than $500, the taxpayer is required to attach the acknowledgment to the...
New Director of IRS Exempt Organizations Division
Lois G. Lerner has been selected as the director of the Exempt Organizations Division of the Internal Revenue Service. In this position she will be responsible for administering and enforcing the tax laws that apply to more than 1.8 million organizations recognized by the IRS as exempt from tax. ...
IRS Exempt Organizations Division 2006 Priorities
EO will continue its balanced approach to tax administration through its emphasis on enforcement and addressing abusive transactions, while maintaining education and outreach to the tax-exempt community. The critical initiatives commenced in FY 2005 will be completed in FY 2006. 1. New initiatives planned for FY 2006 involve abuses...