Protecting Americans Against Tax Hikes (PATH) and Contribution Substantiation Reminder
PATH Act Requires 501(c)(4) Organizations to Provide Notice to IRS after Formation As a result of recent legislation, the Protecting Americans from Tax Hike Act of 2015 (PATH Act), signed into law by President Obama on December 18th, 2015, newly created and certain existing 501(c)(4) social welfare organizations must now file a notice with the…
Tax Planning Reminder – Volunteer Services Letters
As tax filing season approaches, donors should make sure that they have the proper substantiation to support all of their charitable deductions. As explained in this industry alert, donors who incur expenses connected with their volunteer service activities may need an acknowledgement from the charity to properly deduct such expenses. VOLUNTEER SERVICES LETTERS When an…
New Tax Deadlines and Extensions Signed into Legislation
On July 31, 2015, President Barack Obama signed into legislation a bill that provided new deadlines and deadline extensions for several tax filings relevant to business and individual taxpayers. Below are listed the returns affected by passage of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Partnership and S corporation returns…
New Tax Deadlines and Extensions for Nonprofits Signed into Legislation
On July 31, 2015, President Barack Obama signed into legislation a bill that provided new deadlines and deadline extensions for several tax filings relevant to nonprofit organizations. Below are listed the returns affected by passage of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Return of Organization Exempt from Income Tax…
10% Ownership of Foreign Corporations – Mandatory Filing Requirement by 6/30/15
All U.S. entities (including tax-exempt organizations) that maintain at least 10% direct or indirect ownership of stock of a foreign corporation must file a benchmark survey (Form BE-10) with the Department of Commerce Bureau of Economic Analysis. The original deadline for filing fewer than 50 BE-10 forms was May 29, 2015 but has been extended for all new…
New Wage Notice Requirement and Potential Penalties Face DC Nonprofits
Last September, DC Mayor Vincent Gray signed into law the Wage Theft Prevention Amendment Act of 2014, which amends several DC wage payment laws and requires wage-related communications for DC employers, including nonprofits. Once the new law goes into effect, employers will be obligated to transmit to employees a form, in English as well as…
Tax Reform Act of 2014: How It Would Impact Nonprofits
The Tax Reform Act of 2014 was released on February 26, 2014 by Dave Camp, Chairman of the U.S. House of Representatives Ways and Means Committee. Given that 2014 is an election year, it is unlikely that Congress will vote on the proposal this year and may not for some time. However, if enacted as…
TIGTA Warns of “Largest Ever” Phone Fraud Scam Targeting Taxpayers
The Treasury Inspector General for Taxpayer Administration released a press release on Thursday, March 20, 2014 warning taxpayers to beware of phone calls from individuals claiming to represent the Internal Revenue Service (IRS) in an effort to defraud them. This represents, in the words of TIGTA, the “largest ever” phone fraud scam ever seen. Click…
New York Nonprofit Revitalization Act Signed Into Law
The New York Nonprofit Revitalization Act of 2013 introduces a set of policies that will affect nonprofit organizations incorporated in the State of New York and those that solicit charitable contributions in the state. The Act, signed into law by New York State Governor Andrew Cuomo late last year, delivers significant amendments to existing laws…
IRS Issues Revenue Procedure to Streamline Exempt Status Reinstatement Process
On January 2, 2014, the IRS released Revenue Procedure 2014-11 which removes some of the hurdles previously faced by organizations seeking retroactive reinstatement of their exempt status. For organizations whose exempt status was revoked for failure to File Form 990, 990-EZ, or 990-N for three consecutive years, regaining exempt status has often been a difficult and drawn…