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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

IRS Unveils Temporary Expanded Worker Classification Settlement Program

t the end of 2012, the IRS introduced a voluntary classification settlement program (Settlement Program) to provide an incentive for employers with misclassified workers to comply.[1] The Settlement Program temporarily relaxes previous requirements and provides additional tax savings for those who qualify.

March 7, 2013 No Comments

Governance

IRS Study Indicates Good Nonprofit Governance Leads to Better Tax Compliance

The IRS has released preliminary results from their study of tax-exempt organizations’ nonprofit governance practices. As expected, the preliminary findings suggest that organizations with good

May 14, 2012 No Comments

IRS

Self-Declared Exempt Organizations – A Guide to Ensure IRS Compliance

In its 2012 workplan, the IRS announced it will be paying closer attention to self-declared 501(c)(4), (c)(5) and (c)(6) organizations. These groups include social welfare organizations; labor, agricultural and horticultural groups; as well as business leagues and chambers of commerce. Such organizations consider themselves to be tax-exempt because of the nature of their activities, but they have not filed for nor received a formal determination letter from the IRS. These groups are allowed to operate without an official IRS determination because, unlike the 27 month filing deadline for 501(c)(3) charities, they are not subject to a deadline for filing an application for exemption.

April 10, 2012 No Comments

IRS

IRS 2012 Work Plan – What’s New for Nonprofits

Each year, the IRS publishes a report detailing what its focus will be regarding nonprofit organizations and compliance during the year to come. The following are some of the highlights from the 2012 Exempt Organizations Work Plan.

February 27, 2012 No Comments

IRS

New IRS Online Search Tool Released

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

January 21, 2012 No Comments

IRS

PTIN: Ensuring 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.

January 10, 2012 No Comments

New Form 8940 for Miscellaneous IRS Approval Requests

The IRS has released a new form for tax-exempt organizations to use when they request determinations (other than initial exemption applications) about their tax-exempt status.

August 8, 2011 No Comments

IRS Permits More Organizations to File Form 990-N

The IRS today issued guidance (Revenue Procedure 2011-15) that will allow more tax-exempt organizations to file the simplified e-Postcard rather than the Form 990-EZ or the standard Form 990.

For tax years beginning on or after January 1, 2010, most tax-exempt organizations whose gross annual receipts are normally $50,000 or less will be eligible to file the e-Postcard. Previously, the threshold was set at $25,000 or less. Supporting organizations of any size are still not eligible to file the Form 990-N. So, for the 2010 tax year, the new filing requirements are as follows:

January 15, 2011 No Comments

IRS