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2021 Charitable Deduction Reminder

September 20, 2021

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2021 Charitable Deduction Reminder

September 20, 2021

Authored by: BCLP

The Internal Revenue Service explained how expanded tax benefits can help both individuals and businesses give to charity before the end of this year.

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted last December, provides several provisions to help individuals and businesses who give to charity. The new law generally extends through the end of 2021 four temporary tax changes originally enacted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Here is a rundown of these changes.

Deduction for individuals who don’t itemize; cash donations up to $600 qualify

Ordinarily, individuals who elect to take the standard deduction cannot claim a deduction for their charitable contributions. The law now permits these individuals to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to certain qualifying charitable organizations. Nearly nine in 10 taxpayers now take the standard deduction and could

EO Update: e-News for Charities & Nonprofits

September 15, 2021

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EO Update: e-News for Charities & Nonprofits

September 15, 2021

Authored by: BCLP

Updated Procedures Related to Direct Contact in the Determination Process

On August 17, 2021, Exempt Organizations Rulings & Agreements (EO R&A) office issued Interim Guidance (IG) memorandum (TEGE-07-0821-0016) on Updated Procedures Relating to Direct Contact (PDF) in the Determination Process. If an organization submits a valid Form 2848, Power of Attorney and Declaration of Representative, with its application for recognition of tax-exempt status or during case processing, we will contact an authorized representative listed on the Form 2848 to discuss issues or items in the application. We will contact the primary contact person listed on the application if no valid Form 2848 was submitted or if we are unable to contact the authorized representative. See the IG for additional details. The procedural changes are being made to further ensure taxpayers’ effective participation in the EO R&A determinations process, to promote consistency in determinations procedures across TE/GE, and to clarify our

RP-2021-40: Announcing New No-Rule Area under Sec 4941 for Private Letter Rulings

September 3, 2021

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Revenue Procedure 2021-40 amplifies Rev. Proc. 2021-3, 2021-1 IRB 140, which sets forth areas of the Internal Revenue Code (Code) relating to issues on which the Internal Revenue Service (Service) will not issue letter rulings or determination letters.  The revenue procedure announces that the Service will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Code.  Specifically, the Service will not issue rulings on whether an act of self-dealing occurs when a private foundation (or other entity subject to section 4941) owns or receives an interest in a limited liability company or other entity that owns a promissory note issued by a disqualified person.

Revenue Procedure 2021-40 will be in IRB: 2021-38, dated 09/20/2021.

Basic Financial Oversight and Management for Nonprofit Organizations

August 18, 2021

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Time/date:  September 29th, 2021 from 1:00 to 4:00.  Online, via Zoom.

Note: This will be a Zoom webinar.  Link information will be sent after you register. 

Every organization should have board or staff members that possess financial credentials and/or experience and are charged with the primary responsibility of reporting or managing the financial matters of the nonprofit.  However, board and staff members whose expertise is other than financial still need the ability to monitor and manage the financial condition of the organization.  This is an introductory, basic course covering important financial management and oversight principles and activities in every nonprofit organization.

Attendees will learn:

  • How to manage a range of budget and financial matters in relation to your fiscal year
  • Indicators of financial health as well as how to detect potential trouble spots
  • A basic understanding of nonprofit financial statements
  • Plain-language (non-accountant-speak) financial concepts, activities and procedures that anyone

EO Update: e-News for Charities & Nonprofits

July 15, 2021

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EO Update: e-News for Charities & Nonprofits

July 15, 2021

Authored by: BCLP

Electronic Filing Mandate for Form 990-EZ

The Taxpayer First Act, enacted July 1, 2019, requires tax-exempt organizations to electronically file information returns and related forms. The requirement to file electronically generally became effective for tax years beginning after July 1, 2019. However, for small exempt organizations, the legislation specifically allowed a postponement (“transitional relief”). As a result:

  • For tax years ending before July 31, 2021, the IRS will accept either paper or electronic filing of Form 990-EZ, Short Form Return of Organization Exempt from Income Tax.
  • For tax years ending July 31, 2021, and later, Forms 990-EZ must be filed electronically.

IRS will be sending an educational letter (Letter 6194) to organizations that filed paper Forms 990-EZ previously. There is no need to reply to the letter.

Register for the EO Webinar at 2021 Virtual IRS Nationwide Tax Forum

The 2021 Virtual IRS Nationwide Tax Forum consists of

Starting and Governing a Nonprofit 501(c)(3) Organization – a Primer

July 12, 2021

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July 15, 2021 | 2:00 to 4:00 pm | Live Online

Description:

Participate in this web-based class for a primer on how to start a Missouri nonprofit corporation that will seek to obtain 501(c)(3) tax exempt status from the IRS. In addition, this class will also cover the basics of good governance policies, strategies, and requirements that will allow your organization to maintain its 501(c)(3) tax exempt status on an ongoing basis once you are up and running.

Note that this class is meant to provide a basic introduction, and broad overview, on how to start a Missouri nonprofit corporation that goes on to apply for 501(c)(3) tax exempt status. Further, to be clear, this class will focus on applicable Missouri law, requirements, and standards that come into play in the process (vs. state laws and processes that might be different in other states).

Objectives:

As a result of participating

EO Update: e-News for Charities & Nonprofits

June 16, 2021

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Update on Mandatory Electronic Filing for Form 4720 by Private Foundations

Section 3101 of the Taxpayer First Act requires certain exempt organizations to file information and tax returns electronically for tax years beginning after July 1, 2019. Private foundations required to file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code, are included in the electronic filing mandate. Pending conversion of Form 4720 to electronic format, the IRS continued to accept the 2019 tax-year version of this return on paper. While software for the electronic version of Form 4720 has been under development, the IRS also continued to accept the 2020 tax-year version of Form 4720 from private foundations on paper. See Notice 2021-01, 2021-2 I.R.B. 315.

The 2020 Form 4720 and its instructions have been updated for e-filing. As of the beginning of June 2021, several providers have made software

Live IRS Webinars in June; Register now for the 2020 IRS Tax Forum; Join HR Zoom sessions for IRS job openings

June 7, 2021

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Live TE/GE Webinars in June

The IRS Tax Exempt & Government Entities would like to invite you to watch two live webinars we have scheduled this month.

1) Applying for Exemption

When: June 23, 2021, at 1:00 pm ET

Learn about:

    • Steps to take before applying to the IRS for tax-exempt status
    • Types of tax-exempt status available and forms used to request them
    • How to apply for tax-exempt status and tips to shorten the application process

Register: Register now for this free webinar

2) Reporting Election Workers Earnings

When: June 24, 2021, at 1:00 pm ET

Learn about:

    • Workers who should be treated as election workers
    • Taxes that should be withheld from election worker wages
    • Amounts to include in earnings

Register:

New job announcements in TE/GE; Follow IRS on social media and sign up for TE/GE newsletters

May 12, 2021

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TE/GE job announcements

The IRS has announced multiple full-time positions in the Tax Exempt/Government Entities division available across the country. These job announcements close soon, so apply today on USAJOBS.gov to become part of our team.

We’re hosting virtual information sessions for these job openings. Hear from employees currently working in these positions and gain a better understanding of the work they do day-to-day. A representative from HR will also discuss the application process and some of the requirements for the positions.

EO Update: e-News for Charities & Nonprofits

May 7, 2021

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Reminder to tax-exempt organizations: 990s, other forms due on May 17; information and tools available to help

The Internal Revenue Service today reminds tax-exempt organizations that operate on a calendar-year (CY) basis that certain annual information and tax returns they file with the IRS are due on May 17, 2021. These returns are:

  • Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF, 990-BL)
  • Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
  • Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
  • Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

Mandatory Electronic Filing

Organizations filing a Form 990, 990-PF or 990-N for CY2020 must file their returns electronically. Organizations filing Form 990-EZ for CY2020 received transitional relief and may file electronically or in paper.

To help exempt organizations