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...
IRS Exempt Organizations Division 2005 Accomplishments
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...
Registration with the California Registry of Charitable Trusts
The Initial Checklist should be used by charities and other public benefit corporations that must register with the Attorney General’s Registry of Charitable Trusts before engaging in charitable solicitation in California. The Initial Checklist requires among other things a copy of the organization’s articles of incorporation (assuming it is...
Form 3500 – California Exemption Application
Form 3500 (2005) * Application Fee: $25.00 Forms & Instructions 3500 – 2005 Exemption Application Booklet Exempt Organizations – FTB Publication 927 Although most California laws dealing with tax exemption are patterned after the Internal Revenue Code, obtaining state tax exemption is a separate process from obtaining federal exemption. ...
Giving Circles
A giving circle is a pooled fund from which its donors make grants. In its simplest structure, the collaborative effort may be an informal, one-time pooling of funds to support a particular cause. A giving circle may also take on a more formal structure with a large number of...
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...
Senate Legislation: Deductible Charitable Contributions for Non-Itemizers
The Tax-Relief Act of 2005 (S.2020), passed earlier this year by the Senate, would allow taxpayers who do not itemize deductions on their federal income tax returns to take a charitable contribution deduction for total cash contributions in excess of $210 ($420 for married couples filing jointly). This particular...
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...
Donor-Advised Funds
The term "donor-advised fund" is not statutorily defined; yet the donor-advised fund (DAF) is an increasingly popular vehicle of charitable giving that has had a particularly substantial impact on philanthropy over the past several years. The Chronicle of Philanthropy reported that the 88 organizations that provided figures for both...