It appears that Congress will adjourn this year without reaching an agreement on transfer tax legislation. This means that a one-year repeal of estate and generation-skipping transfer (GST) taxes is scheduled to begin on January 1. The one-year repeal results from provisions in the 2001 tax act that reduced estate and GST taxes from 2001 through 2009, culminating in complete repeal in 2010. The provisions in the 2001 act are scheduled to “sunset” in 2011, meaning that estate and GST tax rates and exemptions will return to pre-2001 levels on January 1, 2011.
Daily Dose of Nonprofit Law
Monthly Archives: December 2009
IRS Tips for Year-End Donations
Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years. Some of these changes include the following:
IRS’ 2009-2010 Priority Guidance Plan Items Impacting Tax-exempt Organizations
The joint Department of Treasury/Internal Revenue Service priority guidance plan for 2009-2010 contains the following items of interest to tax-exempt organizations:Revenue procedure to provide terms for hosts of Cyber Assistant software (used to generate Form 1023 exemption applications eligible for reduced user fee).
ABC’s for Exempt Organizations
The ever improving IRS Exempt Organizations webpage offers the following resources to help the manager of a new exempt organization navigate tax issues. The site notes that these materials are not comprehensive and that for further assistance, exempt organizations should consult a tax adviser. The materials, do, however, offer a valuable primer to those looking to educate themselves about their tax compliance obligations.
IRS Releases Governance Check Sheet to be Used by EO Exam Agents
The Internal Revenue Service is at it again. The IRS recently released a Governance Check Sheet that its examination agents will use when examining charitable organizations (other than private foundations), along with a Guide Sheet providing instructions on how to use the Check Sheet. According to the IRS’s webpage for exempt organization governance issues, the Check Sheet “will be used by IRS’ Exempt Organizations Examination agents to capture data about governance practices and the related internal controls of organizations being examined. The data will be included in a long-term study to gain a better understanding of the intersection between governance practices and tax compliance.” These materials are in addition to the governance training materials previously released by the IRS.
Liability Protection for Directors and Officers of Arizona Nonprofit Corporations
// In the last decade or so, directors and officers have faced an increased exposure to personal liability. While the bulk of legal actions have been against directors and officers of for profit corporations, judgments against and settlements by directors and officers of nonprofit corporations are increasing. I am often approached by boards of public [...]
Tax-exempt Purpose: Nonprofit Law Jargon Buster
There are 28 different exemptions under Code Section 501, the most popular of which is Section 501(c)(3). If the corporation plans to qualify for tax-exemption under Section 501(c)(3), the articles must limit the corporation’s activities to tax-exempt purposes. Tax exempt purposes include:
religious,
charitable,
scientific,
testing for public safety,
literary,
educational,
to foster national or international amateur sports competition, or
promote the arts, or for the prevention of cruelty to children or animals.
IRS Issues Exempt Organization Agenda for 2009-2010
A listing of the IRS and Treasury Department’s joint priority guidance plan for the 2009-2010 tax year.
How to Start a Charter School in Arizona
Ellis Carter and Deanna Rader will be co-presenting a webinar on December 15th at 4:00 pm as part of the Arizona Charter School Association’s Charter Starter program. One of the first sessions that the program will offer is a webinar on the legal aspects of starting an Arizona charter school.
