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Category: Tax Exempt Organizations

The Texas Forced Sale Remedy

Governed by Chapter 29 of the Texas Property Code, the forced sale remedy allows the co-owner of an inherited property to force the sale of another owner’s interest in the property if that party fails to meet its ad valorem tax obligations. This sale acts as reimbursement for the taxes paid … Continue reading

IRS 2015 Revisions on Publication 598

The Internal Revenue Service recently published revisions on Publication 598 for tax on unrelated business income of exempt organizations. Publication 598 explains what organizations are subject to the tax, the requirements for the tax return filing, and how to figure out unrelated business income. One revision included an increase to the price of … Continue reading

IRS Holds Private Foundation’s Investment in Corporation as Not Self-Dealing Although It is Funded by Disqualified Persons

In a ruling letter, the Internal Revenue Service (“IRS”) held that an otherwise tax exempt organization’s investment in a corporation will not be a self-dealing activity even though the organization is funded by disqualified persons.

Under section 4941(d) of the Internal Revenue Code, self-dealing between a disqualified person and a … Continue reading

IRS Revokes Tax Exempt Status of Trust for Serving Private Interests of Creators

The Internal Revenue Service (“IRS”) revoked an organization’s tax exempt status under section 501(c)(3) for serving the private interests of the organization’s creators.

The decision, which was made in 2009 and released on November 21, 2014, explained that tax exempt organizations must be organized and operate exclusively for the exempt … Continue reading

Private Foundation Makes Possible to Extend Family Control over CRT/CLT

A charitable remainder trust (CRT) or a charitable lead interest (CLT) is usually of limited period of family control, with the former of the donor’s lifespan and latter of the term of the trust. Both CRT and CLT make distributions to charities, and at the same time grant tax savings … Continue reading

Limited-Life Foundations: Atlantic Philanthropies Down To Last Two Years

Limited-life foundations donate to causes they believe in as spend-down foundations. Atlantic Philanthropies, funded by Chuck Feeney of the Duty Free Shoppers Group, is one such foundation that set its spend down goal for the year 2016 back in 2002. The foundation is now down to its last two billion … Continue reading

IRS Releases 2015 Inflation-Adjusted Items

The IRS released its new Revenue Procedure, which sets the inflation-adjusted items for taxable years beginning in 2015. The major changes set forth in this procedure come from the addition of §36B to the Internal Revenue Code by the Patient Protection and Affordable Care Act of 2010.

The IRS … Continue reading

Charles (Chuck) Rubin: Mission Creep Costs a Section 501(c)(3) Organization Its Exemption

By Charles (Chuck) Rubin

SUMMARY: A change in function of a Section 501(c)(3) organization results in the IRS revoking its exemption.

To receive Section 501(c)(3) status, exempt organizations apply for exemption from the IRS. The exemption application provides details on what the organization intends to do, and the IRS confirms … Continue reading

Updates Made to Statistics of Income TaxStats Table Wizard

The TaxStats Table Wizard allows users to retrieve income statistics and other important data associated with corporations, individuals, tax-exempt organizations, estates, gifts, trusts, etc.

The following updates have been made to the Table Wizard to aid users in gathering information:

1. Corporate data by industry (Forms 1120 and 1120s),  available for … Continue reading

New Regulations and Procedures for Small 501(c)(3) Organizations

The IRS has announced new temporary and proposed regulations providing a quicker process for eligible entities applying for 501(c)(3) tax-exempt status.  The temporary regulations, whose text mirrors the proposed regulations, relax the requirement that an organization filing for tax-exempt status must provide a statement supporting its claim.  Under the new … Continue reading

Regulations on the Political Activity of 501(c)(4) Organizations to Come in 2015

The Commissioner of the IRS, John Koskinen, has announced that new regulations concerning the political activity of 501(c)(4) organizations are forthcoming – by early 2015.  The new regulations should more clearly define political activity, determine to whom it applies, and answer the question of how much political activity is required … Continue reading

AICPA: Six key developments for not-for-profit CPAs

The missions not-for-profits (NFPs) follow do not make them immune to the business difficulties faced in other sectors.

Complexity, regulation, globalization, and economic trends all are creating challenges for NFPs, their leaders, and the CPAs who work with them. New accounting standards for NFPs are under development, and NFPs face … Continue reading