Category Archives: Tax Alert

IRS Releases New Online Search Tool

The IRS launched a new online search tool, Exempt Organizations Select Check, to help users more easily find information about tax-exempt organizationsRead the full article

Start-up Nonprofits Beware: Ensure your Tax Preparer is Registered with the IRS

Charities should be aware that it is now illegal for anyone to receive compensation for preparing a return for someone else if they have not obtained a PTIN from the IRS first; a paid preparer who is not registered with the IRS is perpetrating fraud. If a charity chooses to work with an unregistered paid preparer, it opens itself up to IRS scrutiny and, possibly, denial of tax exemption plus additional attorneys’ fees to resolve any issues arising from the initial filing. Charities also need to keep in mind that the organization, regardless of whether or not a paid preparer was used, is ultimately responsible for the information in it’s exemption application.Read the full article

Abuse of Charitable Organizations and Deductions included in 2010 Dirty Dozen Tax Scams

Every year the IRS releases its “Dirty Dozen” list of tax scams. The list serves both as a warning of scams for taxpayers to avoid as well as a reminder of the IRS’ investigation and enforcement role. This year, the list includes “Abuse of Charitable Organizations and Deductions” .Read the full article

Estate Tax Repeal Alert

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. Read the full article