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Tax Law Roundup current law developments in U.S. taxation

Category Archives: Tax Exempt

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IRS Shakes Up Exempt Organization Division – Impacts Tax-Exempt Rulings

Posted in Procedure, Tax Exempt

This week the IRS announced a realignment of its Exempt Organizations (EO) division.  This realignment will affect primarily the legal and technical side of EO.  This realignment will cause major disruption in the short term, and taxpayers should allow additional time for private letter ruling requests or for exemption applications assigned to EO Technical.  In… Continue Reading

IRS Makes It Easier to Fix Auto-Revoked Tax-Exempt Status Retroactively

Posted in Procedure, Tax Exempt

Finally Rev. Proc. 2014-11 has made it easier to reinstate tax-exempt status retroactively after many non-filers find their exempt status automatically revoked under a 2006 tax law.  The revocation happens automatically after three consecutive years of not filing annual returns (Forms 990, 990-EZ or 990-PF) or information notices (Form 990-N).  The new procedure simplifies and… Continue Reading

IRS Provides Limited Extension for Type III Supporting Organization Transition Rules

Posted in General, Tax Exempt, trusts and estates

Certain charities, known as supporting organizations (SOs), receive favored “public charity” tax exempt status by supporting other public charities or governmental organizations.  In December 2012, the Treasury Department released final and temporary regulations for so-called Type III SOs, including stricter rules for qualifying as a Type III SO, and for avoiding the unfavorable “non-functionally integrated” status. … Continue Reading

IRS Clarifies Contributions to Charity’s Single-Member LLC Are Deductible

Posted in General, Partnership/LLC, Passthrough Entity, Tax Exempt

After much anticipation, the IRS clarified that donors can receive the same charitable deduction for gifts made either directly to a parent charity or to a domestic tax-disregarded entity held by the charity.  Specifically, Notice 2012-52 addressed gifts made to a domestic single-member limited liability company (SMLLC) solely-owned by a U.S. charity.  The Notice concludes… Continue Reading

Final Regulations On The Redesigned Form 990 For Exempt Organizations

Posted in Compliance, Tax Exempt

The IRS finalized regulations (T.D. 9549) implementing the redesigned Form 990, Return of Organization Exempt from Income Tax.  The final regulations largely adopt the temporary and proposed regulations with some modifications.  The final regulations make permanent new threshold amounts for reporting compensation, require that compensation be reported on a calendar-year basis and change rules requiring information reporting… Continue Reading

JCT Report Provides Detail on Obama Tax Proposals

Posted in Green, Legislative, REITs, Tax Exempt

  The Joint Committee on Taxation has issued a 600-page report providing significant detail on the Obama 2012 “Greenbook” tax proposals. Also attached are the excerpts relating to: energy efficient building incentives; carried interest; fractions rule simplification; and partial repeal of the REIT preferential dividends rule. The energy efficient building proposal would convert the existing… Continue Reading