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Client Alert – Section 4940 Excise Tax Simplification

January 21, 2020

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Section 4940 of the Code imposes an excise tax on the “net investment income” of private foundations.  Historically, the excise tax was 2%, with an opportunity for reduction to 1% for a year in which the foundation’s qualifying distributions exceeded a certain amount calculated pursuant to a complicated formula.  Recent tax legislation simplifies the two-tiered system by replacing it with a flat rate of 1.39%.  The new rate is effective for tax years beginning after the date of enactment; which would be 2020 for calendar year private foundations.

Upcoming professional development class offered by the NPML Program at UMSL: Grants Research

December 18, 2019

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Grants Research: An Introduction to Data Resources and Grant Prospect Research

Thursday, Jan. 16, 2020 from 1-4 p.m. in room # 410 Social Science and Business/SSB (on the north UMSL campus, but note a different building than where many of our classes take place). 

Successful grant research includes a review of various kinds of data like giving statistics, reports, and databases.  But learning to identify, evaluate, and select data resources used in grants research can be a challenge.  This course will provide participants with (a) an introduction to the process of information evaluation, (b) data resources commonly available in grant development, and (c) how to use the “Foundation Database Online Professional” database to identify and evaluate funding prospects.

Instructor Brad Smith is the Nonprofit Information Resource Manager for the St. Charles City-County Library District. In that capacity, he oversees the delivery of the Library District’s specialty services to

Recent legislation requires tax-exempt organizations to e-file forms

December 17, 2019

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The Taxpayer First Act, enacted July 1, 2019, requires tax-exempt organizations to electronically file information returns and related forms. The new law affects tax-exempt organizations in tax years beginning after July 1, 2019.

The following IRS forms are included in the mandate:

  • Form 990, Return of Organization Exempt from Income Tax.
  • Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation.
  • Form 8872, Political Organization Report of Contributions and Expenditures.
  • Form 1065, U.S. Return of Partnership Income (if filed by a Section 501(d) apostolic organization).

Those who previously filed paper forms will receive a letter from the IRS informing them of the change. Filing deadlines vary by form type. The IRS will postpone the required e-filing of Form 990-EZ for one year, while optional e-filing continues to be available. Although Forms 990-T and 4720 will come under the e-filing requirement next year, the IRS

TE/GE Fiscal Year 2020 Program Letter

October 17, 2019

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TE/GE Fiscal Year 2020 Program Letter

October 17, 2019

Authored by: Keith Kehrer

TE/GE is pleased to announce the release of the Fiscal Year 2020 Program Letter issued by Tamera Ripperda, our new Tax Exempt and Government Entities Commissioner. TE/GE’s compliance program is driven by six portfolio programs:

  • Compliance strategies
  • Data-driven approaches
  • Referrals, claims and other casework
  • Compliance contacts
  • Determinations
  • Voluntary compliance and other technical programs

This year’s Program Letter is part of the IRS-wide commitment to improve efficiency, modernize our systems and business processes, and find ways to better serve taxpayers.

TE/GE will release a summary of its FY2019 accomplishments when all the data is available. You can also view the annual program (or work plan) and accomplishment letters for previous years.

Proposed regulations on reporting requirements; Penalty relief for reliance on Rev. Proc. 2018-38; CP2100 Notices; IRS videos; Rev. Proc. 2019-39

October 4, 2019

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This news release describes proposed regulations clarifying tax-exempt organization reporting.

Additionally, Notice 2019-47 (PDF) provides penalty relief related to taxpayer reliance on Revenue Procedure 2018-38 set aside by the United States District Court for the District of Montana on July 30.

CP2100 Notices

The IRS will issue a CP2100 or CP2100A Notice if the payee’s name and Taxpayer Identification Number (TIN) on an information return doesn’t match IRS records. Such mismatches trigger backup withholding responsibilities. Publication 1281, Backup Withholding on Missing and Incorrect Name/TIN(s) (PDF), contains all the information payers need to comply.

Review these IRS videos:

New private delivery/express mail address for Exempt Organizations submissions

September 30, 2019

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Use the following address for private delivery or express mail for the forms shown above:

Internal Revenue Service

Mail Stop 31A: Team 105

7940 Kentucky Drive

Florence, KY 41042

 

The P.O. Box address for regular mail remains the same:

Internal Revenue Service P.O. Box 12192 Covington, KY 41012-0192

If you recently submitted an item to another address, it will be forwarded. You do not have to resubmit.

Help for Victims of Hurricane Dorian

IRS is providing tax relief to those affected by Hurricane Dorian. Visit the Hurricane Dorianpage for the latest updates, videos and resources for clients who are victims of Hurricane Dorian.

The IRS offers online training for charitable organizations that assist with disaster relief.Disaster Relief – Parts 1 and II discuss how charities may provide disaster relief, tax law, deductibility of contributions and tax treatment of relief recipients. Organizational leadership and volunteers

Focus on Fraud: Prevention and Detection Measures for Nonprofit Organizations

September 18, 2019

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Oct. 10, 2019 from 2-5 p.m. in #402 J.C. Penney Conference Center

News stories about fraud and embezzlement at nonprofit organizations abound.  Too many organizations find themselves dealing with these kinds of problems when an understanding of common schemes, and the implementation of relatively simple, yet important processes, procedures, and policies could protect them from many of these issues.

Join us for a discussion on how nonprofits can prevent and detect fraud within their organizations. Topics to be covered include:

  • Prevalence of Fraud and Recent Examples of Fraud
  • Common Types of Fraud Schemes
  • Red Flags
  • Preventive and Detective Internal Controls
  • Investigating Potential Frauds

Instructor Christina Solomon is a Partner in Rubin Brown’s Business Advisory Services Group. As a financial forensics expert, she performs forensic accounting analysis and fraud investigations. She has provided financial consultation to businesses in a variety of industries, including manufacturing and distribution, professional service firms,

Upcoming professional development class offered by the NPML Program at UMSL: “Hot topics in Volunteer Management”

September 10, 2019

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Friday, Sept. 27, 2019 from 9 a.m. to 4 p.m. Room #004 Anheuser-Busch Hall/ABH (on the UMSL north campus)

Ask any volunteer coordinator what their biggest challenges are, and these topics will inevitably come up! From recruiting volunteers to managing challenging volunteers, our roster of local volunteer management experts will provide best practices to help tackle your top concerns. Facilitated by Katelind Hosie, MVMA President and Lead Volunteer Center Manager for the United Way of Greater St. Louis, this fast-paced day of speakers will give attendees practical strategies that they can apply to their own volunteer programs.

Topics and speakers:

  • Dealing with “problem” volunteers – Karen Englert, Boys & Girls Clubs of Greater St. Louis
  • Volunteer training best strategies – Stephanie Moreland, Circle of Concern
  • Volunteer Recruitment – Stephanie McCreary, Oasis
  • Special population volunteers – Curtis Parsons, Missouri Botanical Garden
  • Creative ways to engage volunteers – Jessa Glick, Easter

Exempt Organization Update

August 19, 2019

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Exempt Organization Update

August 19, 2019

Authored by: Keith Kehrer

Redesigned Charities and Nonprofits landing and associated webpages launched

Various Charities and Nonprofits webpages have been redesigned to improve organization, design and navigation using data analytics and user testing.

 

Charitable hospitals under the Affordable Care Act – Section 501(r)

The IRS updated webpages detailing four additional requirements under Internal Revenue Code Section 501(r) that must be met by charitable hospitals tax-exempt under Section 501(c)(3). Watch this Overview of Requirements for Charitable Hospitals under Section 501(r) presentation.

 

TE/GE Issue Snapshots provide guidance to IRS employees working hospital cases:

New IRS Tax Withholding Estimator Tell your employees about the new IRSTax Withholding Estimator. The new taxpayer-friendly tool on IRS.gov helps workers tailor the amount of income tax their

Information on fake charities; Revisions to Form 8976 registration system; Update to Revenue Procedure 75-50

June 27, 2019

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Beware of fake charities IRS cautions taxpayers on scams involving disasters, charitable causes andencourages taxpayers to donate to recognized charities to help disaster victims. IRS’ annual “Dirty Dozen” also lists a variety of common scams taxpayers may encounter.

Understanding Disaster Relief Tax Law and Contribution Deductibility The IRS offers two courses – Disaster Relief – Parts 1 and II – for charitable organizations providing disaster relief. Topics include how charities may provide disaster relief, deductibility of contributions and tax treatment of relief recipients. Organization leadership and volunteers should review the Tax-Exempt Organization Workshop that includes important information on the benefits, limitations and expectations of tax-exempt organizations.

Revisions made to IRS Online Registration System for 501(c)(4) Certification Organizations required to submit Form 8976, Notice of Intent to Operate Under Section 501(c)(4), will notice a new look and improved navigation at the Online Registration System for 501(c)(4)