This article provides an overview of the law of inurement and intermediate sanctions.
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Tax-Exempt Organizations
IRS Releases Redesigned Form 990
The IRS has released a redesigned Form 990, Return of Organization Exempt from Income Tax, for use with 2008 tax returns.
Employment Tax Reporting for Disregarded Entities
Many tax-exempt organizations have formed single-member limited liability companies (SMLLCs) as integral parts of their entity structure. However, SMLLCs with employees have new reporting requirements effective January 1, 2009.
Changes to Form 990 Reflect IRS Policy Goals
The IRS recently issued major changes to Form 990, Return of Organization Exempt from Income Tax.
IRS Releases New Draft Instructions to Form 990
New Form 990, Return of Organization Exempt from Income Tax, was released in December 2007, and the first draft release of the instructions was issued in April 2008.
Tax Consequences of the Rush for Natural Gas in the Appalachians
This item provides an overview of some areas of taxation that taxpayers and their advisers must consider to ensure the most favorable terms if their clients are approached by an energy company seeking a land lease and royalty agreement.
Prop. Regs. Ease UBTI Consequences for CRTs
The Service has issued proposed regulations to reflect the change made by TRAHCA to impose a 100% excise tax on the unrelated business taxable income (UBTI) of charitable remainder trusts (CRTs) that have UBTI.
U.S. Withholding Tax Imposed on Foreign Tax-Exempt Organizations
When a foreign charitable organization earns U.S. source portfolio income it often has a choice to make: It can claim tax-exempt status (and thus an exemption from U.S. withholding tax), or the organization may find it easier to refrain from asserting tax-exempt status and opt for treatment as a (nonexempt) foreign organization.
Revised 2008 Form 990 Requires Current Action
Exempt organizations and their tax advisers should be aware that significant changes in reporting rules for Form 990 may require current changes in procedures and an organization’s accounting system to capture the necessary information.
Preaching Tax Compliance
Sec. 501(c)(3) restricts charities from influencing legislation or intervening in any political campaign or from benefiting insiders through private inurement. Ministers must tread carefully to prevent their preaching from crossing into politics.
Temp. Regs. Give Rules on e-Postcards for Exempt Organizations
The IRS has issued regulations (TD 9366) governing how certain tax-exempt organizations that are not currently required to file annual information returns will be required to submit an annual electronic notice.
IRS Releases New Form 8886-T and Final Instructions
The IRS released new Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction, and the final instructions for its use.
Debt-Financed Income and UBTI
Editor: Joel E. Ackerman, CPA, MST Two exempt organizations meet the requirements of Sec. 501(c)(3) (one as a charitable organization and the other as an educational organization—a university). These organizations own equal interests in a partnership, and they have boards of trustees that overlap by more than 50% of the
New Form 990 Aims for Transparency, Accountability, and Oversight
Editor: Frank J. O’Connell, Jr., CPA, Esq. While transparency, accountability, and oversight do not appear to be tax issues per se, recent legislative focus and IRS enforcement in this area have heightened the need for tighter controls within the nonprofit sector. The IRS increased the number of audits in 2006
Change in Rules for CRTs with UBTI Contains Trap for the Unwary
Editor: Frank J. O’Connell, Jr., CPA, Esq The Tax Relief and Health Care Act of 2006 changed the provisions for charitable remainder trusts (CRTs) that have unrelated business taxable income (UBTI). Beginning January 1, 2007, an excise tax in the amount of the UBTI earned by the CRT during the
IRS Bite Beginning to Mirror Its Bark
Editor: Anthony S. Bakale, CPA, M.Tax. Historically, compliance in the exempt organization area has not been a high priority for the IRS. Few organizations were audited, and the Service rarely used its available tools (such as the imposition of intermediate sanctions). Certainly, the IRS pledged a greater focus on perceived
Teaching an Old Dog New Tricks: CRTs and UBTI
Dec. 20, 2006 marked a unique day in the taxation of charitable remainder trusts (CRTs)— President Bush signed into law the Tax Relief and Health Care Act of 2006 (TRAHCA ’06). Buried in that legislation is revised Sec. 664(c), which significantly alters the tax treatment of unrelated business taxable income
New Disclosure Requirements for Form 990-T
Editor: Terence E. Kelly, CPA Under new Sec. 6104(d)(1)(A)(ii),Sec. 501(c)(3) organizations now have to disclose publicly their Forms 990-T, Exempt Organization Business Income Tax Return. The penalty is the same as that for nondisclosure of Form 990, Return of Organization Exempt from Income Tax. Currently, this penalty is $20 per
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
