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Showing 8 posts in Tax-Exempt Organizations.

Lower Application Fee for 1023-EZ Charity Filers

Lower Application Fee for 1023-EZ Charity FilersIn 2014, the IRS introduced a new streamlined tax-exempt application that gave certain charitable organizations the opportunity to bypass the longer Form 1023 tax exempt application.  Some organizations now can apply for tax-exempt status through the Form 1023-EZ. Benefits of Form 1023-EZ include its shorter length and fewer questions regarding the details of a charity's specific operations. However, there are some restrictions as to whether a charitable organization qualifies to submit a Form 1023-EZ.  The IRS has provided an Eligibility Worksheet (pages 11-20 of the Form 1023-EZ instructions) that taxpayers can complete in order to determine if a charity is eligible to use Form 1023-EZ. Read More ›

Categories: News & Events, Tax-Exempt Organizations

Nonprofit vs. Tax Exempt

When working with charities and other nonprofit organizations, two terms are frequently used interchangeably that actually do not mean the same thing.  Watch this video to learn the difference between nonprofit and tax exempt.

Categories: Nonprofit, Tax-Exempt Organizations

Fake Charities Are on the IRS “Dirty Dozen List of Tax Scams” for 2016

Charity DonationsEach year the IRS alerts taxpayers about potential tax scams, and publishes its list of the “Dirty Dozen” problem areas. In its 2016 list, the IRS warns taxpayers about fake charities, identified as “groups masquerading as charitable organizations to attract donations from unsuspecting contributors.”

According to IRS Commissioner John Koskinen, “Fake charities set up by scam artists to steal your money or personal information are a recurring problem. Taxpayers should take the time to research organizations before giving their hard-earned money.” Read More ›

Categories: News & Events, Tax-Exempt Organizations

IRS Releases Tax Tips for Deducting Gifts to Charity

The holiday season is well underway and if you plan on donating money or property to a charity this year, you are going to want to know these six tips before you give. The IRS recommends that you should keep these in mind:

  1. Give to qualified charities. 
  2. Keep a record of all cash gifts.
  3. Household goods must be in good condition.
  4. Get an acknowledgement form from a charity for each deductible donation of $250 or more.
  5. Deduct contributions in the year you make them.
  6. Special rules apply if you give a car, boat or airplane to charity.

Learn more about these IRS tips here.

Categories: Tax, Tax-Exempt Organizations

NFL Drops Tax-Exempt Status

Million dollar athletes. Billionaire owners. Mega television contracts. These are not things that come to mind when one thinks of tax-exempt organizations.

It comes as a surprise to many, therefore, that the National Football League was, until recently, a tax-exempt business league incorporated as a 501(c)(6) organization. Calling the issue a distraction, NFL Commissioner Roger Goodell (who made more than $44 million in 2014) recently announced to team owners and members of the U.S. Congress that the league is giving up its tax-exempt status. Read More ›

Categories: News & Events, Tax-Exempt Organizations

501(c)(3) Organizations: What am I Required to Disclose When People Ask?

Tax-exempt organizations are exempt from many taxes, including federal income taxes.  However, in exchange for exemption from income tax for charitable activities and for receiving tax-deductible contributions, Congress requires 501(c)(3) organizations to disclose the following information to the public upon request: Read More ›

Categories: Income Tax, Tax, Tax-Exempt Organizations

Annual Federal Reporting and Filing Obligations of Tax Exempt Entities

Who Must File?

Virtually all tax exempt entities must file an annual return with the IRS. In fact, the presumption is that a tax exempt organization must file unless they fit into one of the IRS's limited exceptions. Several exemptions apply to certain religious organizations, political organizations, and others.

What Must be Filed?

There is no single form common to all tax exempt organizations, but all will file one of the "990-Series Return" forms, including Forms 990, 990-N, 990-EZ, or 990-PF. Supplemental information may be required through any one or more of Schedule A through R too. In general, tax exempt organizations incurring gross receipts less than $50,000 will file Form 990-N, also known as the "e-Postcard." Organizations that do not qualify to use Form 990-N, but who incur gross receipts less than $200,000 and have less than $500,000 in total assets may file either Form 990 or 990-EZ, while those with receipts or assets equal to or greater than the previously mentioned benchmarks must file Form 990. Finally, private foundations must file Form 990-PF regardless of financial status. Read More ›

Categories: Corporate Income Tax, Tax-Exempt Organizations

IRS Announces New 1023-EZ Form to Simplify Tax-Exempt Applications

Simplify Tax-Exempt Applications with the 1023-EZThe IRS recently announced a new and shorter 1023-EZ form to help small charities apply for 501(c)(3) tax-exempt status.

The new form is described by IRS Commissioner John Koskinen as a "common-sense approach that will reduce lengthy processing delays for small tax-exempt groups and ultimately larger organizations as well." The announcement comes at a time when the IRS is currently evaluating more than 60,000 applications for 501(c)(3) status, with many pending for at least nine months. Read More ›

Categories: Compliance, Tax-Exempt Organizations