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IRS Determination Letters

The determination letter is a notice sent by the IRS stating the nonprofit’s exempt status.

November 7, 2023 No Comments

IRS

Public Inspection – Exempt Organization Tax Records

Tax-exempt organizations must allow timely public inspection of their last three annual information returns and their exemption application or risk steep penalties. Many nonprofits are caught off guard when they receive their first request. Below is a summary of what must be provided and when and what may be withheld.

October 3, 2022 No Comments

IRS

Tax-Exempt Political Organizations

Generally, organizations which are exempt from taxation are listed in § 501(c) of the Internal Revenue Code (“I.R.C.”). Instead, political organizations are governed under I.R.C. § 527. 501(c) organizations are exempt from income tax for various public policy reasons, such as helping to improve lives, strengthening communities and the economy, and lightening the burdens of government. To incentivize social good, the government subsidizes 501(c) organizations by eliminating their tax burden. Conversely, political organizations organized under § 527 do not provide charitable services or improve social welfare. Rather, their sole function is to influence the election of candidates for public office.

September 19, 2022 No Comments

IRS

IRS Provides Guidance for LLCs Seeking 501(c)(3) Status

The IRS has issued Notice 2021-56 outlining the requirements that LLCs seeking 501(c)(3) status must meet to be recognized as tax-exempt by the IRS. These

October 25, 2021 No Comments

IRS

2021 IRS Compliance Priorities for Tax Exempt Organizations

At the beginning of each fiscal year, the IRS releases guidance on its compliance priorities for tax-exempt and government entities (TE/GE) and explains how those priorities align with the agency’s strategic goals. This year, the IRS has streamlined its usual annual long letter approach into a short two-page letter and promised to provide quarterly updates on its compliance priorities; an effort to more accurately reflect the fluid nature of IRS operations and shifting compliance priorities throughout the year.

February 1, 2021 No Comments

IRS Prematurely Issues Auto-Revocation Notices To Exempt Organizations

The IRS released a statement admitting that they sent certain tax-exempt organizations premature auto-revocation notices in error.

October 26, 2020 No Comments

IRS

Do Tax-Exempt Organizations Have To Report Changes To The IRS?

Tax-exempt organizations must report changes to their name, address, changes to their articles and bylaws, and major operational changes to the IRS.

February 4, 2019 No Comments

IRS’ Debuts New and Improved Exempt Organization Search

The IRS has debuted a new and improved exempt organization search page. Previously, the public could use the IRS’ Select Check tool to lookup an organization by name or EIN. However, Select Check only permitted confirmation of an organization’s tax-exempt status and whether the organization was a public charity or private foundation.

May 21, 2018 No Comments

IRS

Form 1023 Questions Posted by IRS

The IRS has posted in links to the questions Exempt Organizations specialists are instructed to ask in relation to various issues raised by applications for exemption and miscellaneous determination requests.

March 5, 2014 No Comments

IRS

IRS Audits of Tax-exempt Entities

Although there are many reasons a nonprofit organization may be selected for an audit, several things heighten the chance of being selected. Things like irregularities on Form 990s, failure to file a Form 990, citizen complaints, having a relationship with another taxpayer currently being audited or receiving negative media attention can all increase your chance of being audited beyond the random internal IRS computer process.

June 11, 2013 No Comments

IRS