Exempt Organization Tax

IRS Offering Streamlined Exemption Option to Backlogged Social Welfare Org Applicants

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new IRS procedure promises a faster track to Federal tax exemption for qualifying section 501(c)(4) organizations that have experienced significant delays in the processing of their applications.
Fact Sheet 2013-8 explains new optional “safe harbor” procedures that the Internal Revenue Service’s Principal Deputy Commissioner Danny Werfel says will “give certain groups that have waited far too […]

Reminders and Deadlines Coming Up on June 30

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Foreign Bank Account Reports (FBAR) are due 
If your organization has ownership or signature authority over one or more foreign bank accounts or foreign financial accounts, your organization and any persons who have individual signatory or other authority over such account(s) mayeach be required to file TD F 90-22.1.
Note that TD F 90-22.1 is filed separately from your organization’s […]

Form 990 Review Checklist for 501(c)(6) Board Members

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Five years ago, the IRS officially rolled-out its redesigned Form 990, Return of Organization Exempt from Income Tax. The redesigned form asked organizations to describe their processes for reviewing the 990.  In addition, the form asked whether the Board of Directors received a copy of the 990 before it was filed.
These questions served the purpose of sparking increased […]

IRS Launches Compliance Checks on Self-Declared Tax Exempts

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The IRS Exempt Organizations Division recently sent letters to more than 1,300 “self-declared” social-welfare groups, labor unions, and business associations, asking them to complete an online questionnaire regarding their revenues, expenses, compensation, unrelated business income, and political activity.
Announced in its FY 2013 work plan, The Self-Declarers Questionnaire is part of the EO Division’s voluntary compliance initiative […]

IRS Releases FY 2012 Annual Report and FY 2013 Workplan

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In January 2013, the Internal Revenue Service released their Exempt Organization Annual Report for 2012 and workplan for 2013.  Highlights of the report include a summary of projects completed in 2012 and a summary of ongoing projects for 2013.
Projects completed in 2012 include:

Public Charity Status reporting compliance check

In 2008, the IRS eliminated the advance ruling process […]

Presentation Issues with 990 Expense Reporting

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We all have expenses, and Part IX of Form 990 is where they mostly get reported.  At a cursory glance, it appears Part IX is laid out in a natural expense classification format that should be largely compatible with one’s general ledger accounts (or groupings thereof), and in fact to a large extent that’s quite true.  However, […]

DC Employers Subject to New Use Tax Filing Requirement

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Buried in the recently-passed District of Columbia 2013 Budget Support Act is a new provision requiring DC employers not currently filing a sales tax return, to file an annual use tax return. The 2013 budget bill amends Section 47-2211 of the DC Official Code to include the new employer use tax reporting requirement.  Beginning with […]

Current Developments in Sales and Use Tax

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With the expansion of internet sales over the past decade, the conventional wisdom has been that consumers could save money on the purchase of products online rather than purchasing those same products in retail stores where the transactions would be subject to sales tax (caveat: use tax is always required to be paid by businesses […]

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