In a recent newsletter, CCH, a tax services conglomerate, highlighted a decision by the Tax Court that the California-based Foundation of Human Understanding is not a religious organization "because its associational activities were incidental to its primary functions of writing,...
Recently in Tax Exempt Organizations Category
On May 17, 2010, the IRS began revoking tax-exempt status from nonprofits that failed to file three consecutive annual returns (Form 990-N, 990-EZ, 990, or 990-PF). As a result, as many as 300,000 nonprofits may lose their tax-exempt status, effectively...
The Jewish Federation of Greater Washington has highlighted a new offering from the IRS: the agency is providing temporary relief to allow small tax-exempt organizations to come back into compliance and retain their tax-exempt status even though they failed to file for three consecutive...
The Internal Revenue Service's Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting on June 9 and submit its latest round of recommendations to the IRS Commissioner Doug Shulman and other senior executives. Posted by...
In PLR 201021045, the IRS ruled that ownership of voting common stock by an organization described in Section 501(c)(3) and classified as a foundation in Section 509(a) will not constitute excess business holdings under Section 4943 if the organization distributes...
In PLR 201021037, the IRS granted a waiver of the 60-day rollover requirement in Section 402(c)(3) for a distribution from a qualified retirement plan. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Continue reading "IRS Waives Section 402(c)(3) 60-day Rollover Requirement"
Tax Notes has published an article by Robert J. Jackson and William B. Weatherford of PricewaterhouseCoopers LLP. The article examines issues that arise regarding the IRS's allowance of some tax-exempt entities and investment partnerships to avoid unrelated business taxable income...
On May 7, the Internal Revenue Service released an interim report summarizing responses to compliance questionnaires sent to 400 public and private colleges and universities in October 2008. Colleges and universities make up one of the largest nonprofit segments in...
The Planned Giving Design Center has released a message detailing a recent, private ruling by the Internal Revenue Service that, according to the Center, declares: "that a public charity's receipt of commissions in connection with a real estate leasing activity will not be...
Continue reading "Brokerage Commissions Not Unrelated Business Income Says IRS"
The New York Times, in an article by Stephanie Strom titled: "One-Fourth of Nonprofits Are to Lose Tax Break," reported that as of midnight on May 15 as many as a quarter of nonprofit organizations may lose their tax...
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The IRS has released a number of rulings on whether or not scholarship awards made through a private foundation's scholarship program are taxable expenditures. In PLR 201014069, recipients of the scholarship had to establish a substantial connection to a specific...
Continue reading "IRS Releases Multiple Rulings on Scholarship Awards"
In PLR 201014041, the IRS granted an extension of time to make an election under Internal Revenue Code section 168(h) not to be treated as a tax-exempt controlled entity to the subsidiary of a nonprofit organization. According to the ruling,...
Continue reading "PLRS 201014041: IRS Grants Extension for Tax-Exempt Entity Election"
The IRS has recently posted on its website a FAQ about the annual reporting requirements for exempt organizations. Topics covered include filing responsibilities, exceptions to the filing requirement, requirements for small tax-exempt organizations, results from failure to file the annual...
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In a letter to the Treasury, the Council on Foundations submitted suggestions for the authorization of centralized equivalency determination repositories (EDIR). According to the Council, charities operating overseas would greatly benefit from centralized EDIR, and the IRS would be able...
Continue reading "Council on Foundations Submits Suggestions for EDIR Formation"
In Bellco Credit Union v. United States, the United States District Court for the District of Colorado ruled on the liability of a tax-exempt credit union for unrelated business income tax. Three specific products offered by Bellco Credit Union were at issue:...
Continue reading "Bellco Credit Union v. United States: Liability of Credit Union for UBIT"