The following list of accomplishments of the Exempt Organizations (EO) division of the IRS in 2005 is excerpted from the IRS Letter to colleagues, members of the press and taxpayers dated as of October 25, 2005: 1. Disaster Relief. EO acted swiftly after Hurricane Katrina by immediately issuing a...
IRS & FEDERAL TAX ISSUES
New User Fee Schedule for 2006
EO letter ruling fees, which previously ranged from $155 to $2,570, will increase to $275 to $8,700. Effective February 1, 2006. EO fees for determination letters and requests for group exemption letters, which currently range from $150 to $500, will increase to $900. Effective July 1, 2006. EO will...
Vehicle Donation Deductions
The IRS announced on December 20, 2005 that it will not treat vehicles sold at auction as qualifying for the sale to needy individuals exception that permits a fair market value deduction. Under the American Jobs Creation Act of 2004, a donor’s deduction for a vehicle donation is generally...
Waiver of Requirement to File Returns Electronically
The IRS has issued guidance on how exempt organizations that are required to file certain returns electornically may obtain a waiver of those requirements. On January 12, 2005, the IRS released regulations that require certain tax-exempt organizations to file annual exempt organization returns electronically beginning in 2006. For 2005...
Form 1023 (Rev. 10-2004)
On October 26, 2005, I "attended" a teleconference entitled "Dealing With the New IRS Form 1023" sponsored by the Taxation Section of the American Bar Association and The ABA Center for Continuing Legal Education. The presenters, including Eve R. Borenstein and Kristin M. Gurdin, provided tips and identified traps...
Sen. Grassley’s Remarks at the Independent Sector Conference – 2005
Senate Finance Committee Chairman Charles Grassley (R-Iowa) made the following remarks at the 25th Annual Independent Sector Conference on October 24, 2005: – “I see the need for greater responsibility of donors and charities to safeguard the public trust.” – “I’m pleased with much of the work from the...
“Life Cycle of a Private Foundation” Launched by the IRS – October 17, 2005
The Internal Revenue Service today launched a new section in their website, "Life Cycle of a Private Foundation," to accompany its previously launched section, "Life Cycle of a Public Charity." Click here for a link to the new section.
Draft Form 990 Available for Comment
Click here to view the new draft form.
Proposed Regulations – Intermediate Sanctions and Recognition of Tax-Exempt Status
The proposed regulations issued by the IRS on September 9, 2005, clarify (1) that a tax-exempt organization under IRC section 501(c)(3) must serve a public rather than a private interest, and (2) that that the imposition of intermediate sanctions for excess benefit transactions under IRC section 4958 does not...
Hurricane Katrina – IRS Expedites Charity Applications, Urges Use of Existing Charities
The IRS will provide an expedited review and approval process for new organizations seeking tax-exempt status in order to provide relief for victims of Hurricane Katrina. Click here for the details. Click here for Publ. 3833, Disaster Relief: Providing Assistance Through Charitable Organizations. Click here for the IRS website...