Exempt Organization Tax

Charitable Class – Size Matters!

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By: Lisa W. Heller, CPA, Tax Senior Manager
Charities exist to help people in need. For purposes of Section 501(c)(3), the term “charitable” is defined to include “relief of the poor and distressed or of the underprivileged…” In order to further charitable purposes, this relief must be directed to a charitable class of beneficiaries, rather than […]

Automatic Revocation of Exempt Status for Subordinate Group Members: Reinstatement and Erroneous Revocation

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By: R. Michael Sorrells, CPA, Tax Principal
Automatic Revocation:  The Pension Protection Act of 2006 added a provision to the tax law (IRC Section 6033(j)), which automatically revokes tax exempt status for any tax-exempt organization that does not file a Form 990 series return (Form 990, 990-EZ or 990-N, as applicable) for 3 consecutive years.  Tax […]

Bringing Sales Tax into the 21st Century – Online Sales Tax

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By: Eric Owens
The Marketplace Fairness Act of 2017 was introduced in the U.S. Senate in late April 2017 by a bipartisan group of senators. This piece of legislation has been introduced on several occasions since 2011, having passed in the Senate in 2013 only to be later shot down in the House. The purpose of […]

FinCEN Grants Automatic Extensions for Filing FBARs

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By: Lisa W. Heller, CPA, Senior Tax Manager

The Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department has changed the annual due date for filing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), from June 30 to April 15. The change is effective for foreign financial accounts maintained during and after calendar […]

2017 IRS Tax Exempt Work Plan: What the IRS has in Store for Nonprofits

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By: R. Michael Sorrells, CPA
In most years the Internal Revenue Service releases its work plan for Exempt Organizations, Government Entities and Employer Plans. This document summarizes its major activities and accomplishments in the sector for the prior year and discusses plans for the upcoming year, including information about its audit focus, determination and ruling processes, and […]

The IRS 2016-2017 Priority Guidance Plan—Plans for Exempt Organizations

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By R. Michael Sorrells, CPA
Each summer, the Internal Revenue Service releases its Priority Guidance Plan (PGP) for the upcoming year. This document includes projects that cover all areas of tax, including businesses, individuals, health care, and exempt organizations.  The IRS solicits suggestions from interested parties, such as taxpayers, practitioners and industry groups (e.g., the AICPA […]

New Due Dates for Tax Returns Due in 2017

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By: Lisa W. Heller, Tax Senior Manager
As you may be aware, there have been several changes in due dates for federal tax returns. These changes are generally effective for tax years starting after December 31, 2015 – that is, for 2016 tax returns prepared during the 2017 filing season. These modifications relate mostly to flow-through […]

Charity Auctions: More Tax Rules Than You Thought!

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By: R. Michael Sorrells, CPA, Tax Principal
A high number of organizations use auctions as a fun and usually fruitful way to raise funds. Charity auctions and the various tax rules governing them are certainly not new, but we frequently are asked about them and observe many instances of inadequate auction procedures by both large and […]

Alternative Investments: Compliance and Tax Issues Galore

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By R. Michael Sorrells, CPA, Tax Principal
With the lure of great investment yields, many nonprofit organizations have moved large portions of their investment portfolios to an array of alternative investments, many of which derive income from off-shore sources. These investments include partnerships, limited liability companies (LLCs), funds, hedge funds, funds of funds and other similar […]

New Form 8976 Notifies IRS of Intent to Operate as a Section 501(c)(4) Organization

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By: Deborah Kosnett, CPA, Tax Principal
The IRS has issued temporary regulations (T.D. 9775) relating to a new filing requirement, added by the Protecting Americans from Tax Hikes (PATH) Act of 2015, mandating that newly-formed civic organizations must timely notify the IRS of their intent to operate as tax-exempt social welfare groups under section 501(c)(4) […]

The Right Size, Right Fit

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