IRS News Archives - Page 2 of 2 - Nonprofit Corporations & Charitable Organizations

IRS’ Tax Exempt Organization Search Tool

The IRS’ Tax Exempt Organization Search helps users find information about a tax-exempt organization’s federal tax status and filings. You can find:

Organizations eligible to receive tax-deductible charitable contributions (Pub 78 data).
- Users may rely on this list in determining deductibility of their contributions. (Users may also download a complete list.) Data posting date: 02-10-2020
- Be aware of the following when searching for organizations that can receive tax-deductible contributions:
  1. Certain eligible donees (i.e., churches, group ruling subordinates, and governmental units) may not be listed. See Other Eligible Donees for more information.
  2. “Doing business as” (also known as DBA) names of organizations are not listed. See Search Tips for additional guidance.

Automatically revoked organizations
- By law, tax-exempt status is revoked when an organization does not file required Form 990-series returns or notices annually for three consecutive years. The automatic revocation date listed for each organization is historical; it reflects an organization’s effective date of automatic revocation, but not necessarily its current tax-exempt status. The organization may have applied to the IRS for reinstatement of exemption and been recognized by the IRS as tax-exempt after its effective date of automatic revocation. (Users may also download a complete list.) Data posting date: 02-10-2020

IRS determination letters dated on or after January 1, 2014
- IRS issues a determination letter recognizing an organization as tax-exempt under the sub-section for which it applied. An organization must apply and pay a user fee to receive a determination letter. Data posting date: 02-14-2020
Form 990-series returns
- Forms 990, 990-EZ, 990-PF and 990-T (990-T returns for 501(c)(3) organizations only). (Users may also download a complete list.) Data posting date: 01-24-2020
Organizations that have filed a Form 990-N (e-Postcard)
- Form 990-N (e-Postcard) is an annual electronic notice most small tax-exempt organizations (annual gross receipts normally $50,000 or less) are eligible to file instead of Form 990 or Form 990-EZ. (Users may also download a complete list.) Data posting date: 03-02-2020

Search Tips for Tax Exempt Organization Search

JAWS Users should visit Tax Exempt Organization Search: Frequently Asked Questions for information on how to use the search tool.

Additional information

Frequently asked questions – Tax Exempt Organization Search Tool
Revocations of 501(c)(3) Determinations
Suspensions Pursuant to Code Section 501(p)
Exempt Organizations Business Master File Extract (EO BMF): a list of organizations recognized as exempt by the IRS
www.StayExempt.irs.gov – Interactive Training for Charities

Richard Keyt2020-03-02T21:57:22-07:00IRS News|0 Comments

First Church of Cannabis Gets 501(c)(3) Tax Exemption from IRS

USA Today: “Emotions appeared to be sky high at the newly formed First Church of Cannabis after the Internal Revenue Service granted it nonprofit status. The designation means donors can deduct gifts to the church on their federal tax returns if they itemize and the church is eligible for a property-tax exemption in Indiana. The organization has raised $10,905 in a gofundme.com solicitation but has not found a home yet. “What a GLORIOUS DAY it is folks,” the founder and grand poohbah, Bill Levin, wrote May 26 in a Facebook post announcing the church’s IRS approval as 501 (c) (3) charitable organization.

Richard Keyt2018-01-14T10:38:13-07:00Charitable Organizations, Charity News, IRS News|0 Comments

IRS Seeks to Define Political Activity for Nonprofits

New York Times: “The Internal Revenue Service could issue as early as next month new draft regulations governing political activity by tax-exempt organizations, according to a notice issued on Thursday. But it remains unlikely that the new rules would be in place before the 2016 election.”

Richard Keyt2015-05-27T21:23:35-07:00IRS News|0 Comments

Tips from IRS for Year-End Gifts to Charity

The Internal Revenue Service today reminds individuals and businesses making year-end gifts to charity that several important tax law provisions have taken effect in recent years. Some of the changes taxpayers should keep in mind include:

Rules for Charitable Contributions of Clothing and Household Items

Household items include furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to charity generally must be in good used condition or better to be tax-deductible. A clothing or household item for which a taxpayer claims a deduction of over $500 does not have to meet this standard if the taxpayer includes a qualified appraisal of the item with the return.

Donors must get a written acknowledgement from the charity for all gifts worth $250 or more. It must include, among other things, a description of the items contributed.

Guidelines for Monetary Donations

A taxpayer must have a bank record or a written statement from the charity in order to deduct any donation of money, regardless of amount. The record must show the name of the charity and the date and amount of the contribution. Bank records include canceled checks, and bank, credit union and credit card statements. Bank or credit union statements should show the name of the charity, the date, and the amount paid. Credit card statements should show the name of the charity, the date, and the transaction posting date.

Donations of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.

These requirements for the deduction of monetary donations do not change the long-standing requirement that a taxpayer obtain an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. However, one statement containing all of the required information may meet both requirements.

Reminders

The IRS offers the following additional reminders to help taxpayers plan their holiday and year-end gifts to charity:

Qualified charities. Check that the charity is eligible. Only donations to eligible organizations are tax-deductible. Select Check, a searchable online tool available on IRS.gov, lists most organizations that are eligible to receive deductible contributions. In addition, churches, synagogues, temples, mosques and government agencies are eligible to receive deductible donations. That is true even if they are not listed in the tool’s database.

Year-end gifts. Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of 2014 count for 2014, even if the credit card bill isn’t paid until 2015. Also, checks count for 2014 as long as they are mailed in 2014.

Itemize deductions. For individuals, only taxpayers who itemize their deductions on Form 1040 Schedule A can claim deductions for charitable contributions. This deduction is not available to individuals who choose the standard deduction. This includes anyone who files a short form (Form 1040A or 1040EZ). A taxpayer will have a tax savings only if the total itemized deductions (mortgage interest, charitable contributions, state and local taxes, etc.) exceed the standard deduction. Use the 2014 Form 1040 Schedule A to determine whether itemizing is better than claiming the standard deduction.

Record donations. For all donations of property, including clothing and household items, get from the charity, if possible, a receipt that includes the name of the charity, date of the contribution, and a reasonably-detailed description of the donated property. If a donation is left at a charity’s unattended drop site, keep a written record of the donation that includes this information, as well as the fair market value of the property at the time of the donation and the method used to determine that value. Additional rules apply for a contribution of $250 or more.

Special Rules. The deduction for a car, boat or airplane donated to charity is usually limited to the gross proceeds from its sale. This rule applies if the claimed value is more than $500. Form 1098-C or a similar statement, must be provided to the donor by the organization and attached to the donor’s tax return.

If the amount of a taxpayer’s deduction for all noncash contributions is over $500, a properly-completed Form 8283 must be submitted with the tax return.

IRS.gov has additional information on charitable giving, includingPublication 526, Charitable Contributions.

On the Net2018-05-13T12:19:38-07:00Charitable Organizations, Donations, IRS News|0 Comments

IRS Announces New Form 1023-EZ that Simplifies Exemption Applications

The following is the text of a July 1, 2014, IRS press release:

The Internal Revenue Service today introduced a new, shorter application form to help small charities apply for 501(c)(3) tax-exempt status more easily.

“This is a common-sense approach that will help reduce lengthy processing delays for small tax-exempt groups and ultimately larger organizations as well,” said IRS Commissioner John Koskinen. “The change cuts paperwork for these charitable groups and speeds application processing so they can focus on their important work.”

The new Form 1023-EZ, available today on IRS.gov, is three pages long, compared with the standard 26-page Form 1023. Most small organizations, including as many as 70 percent of all applicants, qualify to use the new streamlined form. Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible.

“Previously, all of these groups went through the same lengthy application process — regardless of size,” Koskinen said. “It didn’t matter if you were a small soccer or gardening club or a major research organization. This process created needlessly long delays for groups, which didn’t help the groups, the taxpaying public or the IRS.”

The change will allow the IRS to speed the approval process for smaller groups and free up resources to review applications from larger, more complex organizations while reducing the application backlog. Currently, the IRS has more than 60,000 501(c)(3) applications in its backlog, with many of them pending for nine months.

Following feedback this spring from the tax community and those working with charitable groups, the IRS refined the 1023-EZ proposal for today’s announcement, including revising the $50,000 gross receipts threshold down from an earlier figure of $200,000.

“We believe that many small organizations will be able to complete this form without creating major compliance risks,” Koskinen said. “Rather than using large amounts of IRS resources up front reviewing complex applications during a lengthy process, we believe the streamlined form will allow us to devote more compliance activity on the back end to ensure groups are actually doing the charitable work they apply to do.”

The new EZ form must be filed online. The instructions include an eligibility checklist that organizations must complete before filing the form.

The Form 1023-EZ must be filed using pay.gov, and a $275 user fee is due at the time the form is submitted. Further details on the new Form 1023-EZ application process can be found in Revenue Procedure 2014-40, posted today on IRS.gov.

There are more than a million 501(c)(3) organizations recognized by the IRS.

Related Item: Information on Form 1023-EZ

On the Net2020-03-08T07:06:44-07:00Applications for Exemption, IRS News|0 Comments

Exempt Organizations Select Check

Exempt Organizations Select Check is an on-line search tool that allows users to search for and select an exempt organization and check certain information about its federal tax status and filings. It consolidates three former search sites into one, providing expanded search capability and a more efficient way to search for organizations that:

Are eligible to receive tax-deductible charitable contributions (Publication 78 data). Users may rely on this list in determining deductibility of their contributions (just as they did when Publication 78 was a separate electronic publication rather than part of Select Check).

Have had their tax-exempt status automatically revoked under the law because they have not filed Form 990 series returns or notices annually as required for three consecutive years (Auto-Revocation List)

Have filed a Form 990-N (e-Postcard) annual electronic notice. (Most small exempt organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, unless they choose instead to file a completed Form 990 or Form 990-EZ.)

In addition to searching for a particular organization, users may download a complete list of each of the three types of organizations through Exempt Organizations Select Check.

Search Tips for Exempt Organizations Select Check

FOR RELATED INFORMATION SEE:

Organizations eligible to receive tax-deductible charitable contributions
Automatic revocation of tax exemption
Form 990-N (e-Postcard)
Revocations of 501(c)(3) Determinations
Exempt Organizations Business Master File Extract (EO BMF): a list of organizations recognized as exempt by the IRS

On the Net2018-05-13T12:21:22-07:00IRS News, Miscellaneous|0 Comments

Beware of Impersonation of Charitable Organizations Scams

Another long-standing type of abuse or fraud is scams that occur in the wake of significant natural disasters.

Following major disasters, it’s common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Scam artists can use a variety of tactics. Some scammers operating bogus charities may contact people by telephone or email to solicit money or financial information. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds.

They may attempt to get personal financial information or Social Security numbers that can be used to steal the victims’ identities or financial resources. Bogus websites may solicit funds for disaster victims. The IRS cautions both victims of natural disasters and people wishing to make charitable donations to avoid scam artists by following these tips:

To help disaster victims, donate to recognized charities.

Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. IRS.gov has a search feature, Exempt Organizations Select Check, which allows people to find legitimate, qualified charities to which donations may be tax-deductible.

Don’t give out personal financial information, such as Social Security numbers or credit card and bank account numbers and passwords, to anyone who solicits a contribution from you. Scam artists may use this information to steal your identity and money.

Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.

Call the IRS toll-free disaster assistance telephone number (866-562-5227) if you are a disaster victim with specific questions about tax relief or disaster related tax issues.

On the Net2018-01-14T10:38:14-07:00IRS News, Miscellaneous|0 Comments

Life Cycle of a Public Charity

During its existence, a public charity has numerous interactions with the IRS – from filing an application for recognition of tax-exempt status, to filing the required annual information returns, to making changes in its mission and purpose. The IRS provides information, explanations, guides, forms and publications on all of these subjects – they are available through this IRS Web site. The illustration below provides an easy-to-use way of linking to the documents most charities will need as they proceed though the phases of their “life cycle.”

In addition to the following illustration, you can also download a graphical depiction of the life cycle, which includes functioning links back to our site.

Starting Out
Organizing Documents Required Provisions Sample Organizing Documents Governance and related topics Bylaws State law requirements Employer Identification Number Application Form Online EIN Application Charitable Solicitation Initial State Registration Periodic State Reporting State Charity Offices Help from the IRS
Applying to IRS
Requirements for Exemption Application Forms Exemption Application Group exemption User Fee Power of Attorney Disclosure of Applications IRS Processing While You Wait Rulings and Determination Letters Help from the IRS Application Process Step by Step Customer Account Services Publication 4220, Applying for 501(c)(3) Tax-Exempt Status Publication 557, Tax-Exempt Status for Your Organization
Required Filings
Annual Exempt Organization Return Requirements for Filing e-File for Exempt Organizations e-Postcard for Small Exempt Organizations Unrelated Business Income Tax Requirements for Filing Form 990-T Form 990-T instructions Form 990-W Estimated Tax Exceptions and Exclusions Publication 598, Tax on Unrelated Business Income for Exempt Organizations Help from the IRS Customer Account Services Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities Publication 557, Tax-Exempt Status for Your Organization
Ongoing Compliance
Jeopardizing Exemption Inurement/Private Benefit Intermediate Sanctions Lobbying/Political Activity Not Filing Annual Return or Notice Employment Taxes Requirement to Pay Exceptions and Exclusions Worker Classification Forms and Publications Retirement Plan Compliance Substantiation and Disclosure Charitable Contributions Publication 1771, Charitable Contributions Substantiation and Disclosure Requirements Written acknowledgments Quid pro quo contributions Charity auctions Noncash Contributions Donor ( Form 8283) Donee ( Form 8282) Publication 561, Determining the Value of Donated Property Public Disclosure Requirements Help from the IRS Customer Account Services Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities Publication 557, Tax-Exempt Status for Your Organization
Significant Events
Reporting Changes to IRS Termination of Exempt Organization Private Letter Rulings and Determination Letters Audits of Exempt Organizations Potential Examination Consequences Examination Procedures Power of Attorney Termination of an Exempt Organization Help from the IRS

On the Net2018-05-13T12:21:22-07:00Charitable Organizations, IRS News|0 Comments