IRS Guidance on UBIT Silos – 512(a)(6) – PART II

In Part I of this two-part article on IRS Notice 2018-67 regarding the calculation of unrelated business taxable income (UBTI) under the Tax Cuts and Jobs Act (TCJA), we discussed the need to separate different lines of unrelated business activities, which is now required to calculate an organization’s unrelated business income tax (UBIT). In Part II, we focus on special […]

IRS Work Plan FY 2018 (and Draft Form 1024-A)

On September 28, 2017, the IRS released its Tax Exempt and Government Entities FY 2018 Work Plan. Below are some excerpts from the Commissioners about the IRS Work Plan for the division generally in charge of nonprofit tax compliance and some highlights from the Plan: We enter Fiscal Year 2018 as a more cohesive and efficient […]

Tax-Exemption and Public Policy – Bob Jones University

Bob Jones University v. United States, 461 U.S. 574 (1983), is a landmark case in which the United States Supreme Court held that the IRS had the authority to revoke the 501(c)(3) tax-exempt status of Bob Jones University (BJU) based on the university’s racially discriminatory practices that were contrary to public policy. According to The Greenville News, BJU announced it […]

New IRS Notification Requirement for 501(c)(4) Organizations – Form 8976

On July 8, 2016, the IRS issued final and temporary regulations and published Revenue Procedure 2016-41 relating to the immediately effective requirement that organizations notify the IRS of their intent to operate under section 501(c)(4) of the Internal Revenue Code (“IRC”). Form 8976, “Notice of Intent to Operate Under Section 501(c)(4),” is the electronic notification required […]

5 Highlights from the ABA Exempt Organizations Committee Meeting 1/29/16

x-144-15 Here are 5 highlights from the American Bar Association Exempt Organizations Committee Meeting held in Los Angeles on January 29, 2016: 1. Form 1023-EZ The IRS Tax Exempt & Governmental Entities Division (TE/GE) disagreed with the critical conclusions made by the National Taxpayer Advocate regarding the level of noncompliance by organizations filing the Form 1023-EZ […]

Private Foundation: New Rules Recognizing Mission-Related Investments

On September 15, 2015, the IRS released Notice 2015-62, Investments Made for Charitable Purposes, which may provide comfort to private foundations about making mission-related investments with reasonable business care without violating the jeopardizing investments laws. It is hoped that this guidance will catalyze greater impact investing by foundations using their endowment assets. Mission-Related Investments While a mission-related investment […]

Nonprofit Law 101 for Journalists

Prompted by a conversation among nonprofit leaders about the public’s and media’s general lack of knowledge about nonprofits, this article targeted at journalists briefly discusses some basics of federal tax laws applicable to 501(c)(3) organizations and common state corporate and charitable trust laws applicable to nonprofits. Internal Revenue Code Section 501(c)(3) Exempt Purposes A 501(c)(3) organization […]

Recent News from IRS Exempt Organizations Division

IRS Exempt Organizations (EO) Division Director Tamera Ripperda has been speaking at conferences and to a few select groups over the past several weeks, providing us with a glimpse with what is currently happening within the EO Division. Ripperda commented that: the IRS will shift its approach in examinations to focus on data-driven analysis of specific compliance […]