IRS Releases Streamlined Application for Tax Exemption

Friday, July 11, 2014

The IRS has released Form 1023-EZ, an abbreviated application for the recognition of tax-exempt status. This “short form” is generally available for U.S. organizations with assets of $250,000 or less and gross receipts of $50,000 or less. It can be filed electronically and the application fee is $400, half the fee for the full Form […]

Non 501(c)(3) Exempt Organizations that Receive Public Resources and Engage in Campaign Activity Have Additional Reporting

Friday, July 11, 2014

Nonprofits, other than those organized as 501(c)(3)s, that receive public resources from one or more local agencies that account for more than 20 percent of the organization’s annual gross revenue and engage in campaign activity must report such activity on FTB Form 3589. Campaign activity (to be distinguished from lobbying) is generally defined as payment […]

New Reporting for Non-501(c)(3)s that Engage in Campaign Activity

Thursday, April 24, 2014

Effective January 1, 2014, certain nonprofit organizations that receive public resources from one or more local agencies and engage in campaign activity may be subject to new reporting requirements. If a California nonprofit organization receives public resources that account for more than twenty- percent of the organization’s annual gross revenue in the current fiscal year […]

IRS issues proposed correction and disclosure procedures for failures to meet new requirements for charitable hospitals

Thursday, February 13, 2014

Notice 2014-3 contains a proposed revenue procedure that provides correction and disclosure procedures for failures to meet the requirements of Code Section 501(r). The correction principles include restoration of affected persons, appropriate number or size of correction actions, promptness, and implementation of safeguards. Correction actions may be used to remedy deficiencies of the Community Health […]

VEBA investment income exceeding account limit subject to UBTI regardless of how income is used

Thursday, February 13, 2014

A Voluntary Employees Beneficiary Association (VEBA) may set aside as exempt function income an amount that does not exceed the 419A account limit for the tax year. Should a VEBA’s set-aside exceed the qualified account limit, its taxable income is the lesser of the excess or its investment income. The IRS holds the view that […]