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Delayed Form 990 Filing Season for Certain Tax-Exempt Hospitals

In IRS Announcement 2011-20, the IRS granted tax-exempt organizations that operate one or more hospital facilities (hospital organizations), and that would otherwise be required to file Form 990, Return of Organization Exempt From Income Tax, including Schedule H, Hospitals, for the 2010 tax year before August 15, 2011, an automatic three-month extension of time to file the Form 990 for 2010. In addition, this announcement directs these hospital organizations not to file the 2010 Form 990 before July 1, 2011.

FREE IRS Webinar for Non-501(c)(3)s

February 23, 2011

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FREE IRS Webinar for Non-501(c)(3)s

February 23, 2011

Authored by: Keith Kehrer

The IRS is offering a free webinar on Thursday, February 24, 2011, at 2pm Eastern, for new 501(c)(4), (c)(5), (c)(6), (c)(7), (c)(8) and (c)(10) tax exempt organizations — including social welfare, labor and agricultural organizations, business leagues, trade associations, social clubs, andfraternal organizations — and the tax professionals who represent them.  The webinar will provide information regarding annual filing requirements, avoiding loss of exemption, and available tools.  For more information, please click here.

IRS Releases New Publication for Ministers and Religious Workers

February 20, 2011

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The IRS recently released Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers.   The Publication provides information regarding the special rules under the Self-Employment Contributions Act and the Federal Insurance Contributions Act applicable to Ministers and Clergy.  For additional information, click here.

Donations Plus State Tax Credits = Full Deduction

February 16, 2011

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There are numerous programs available in various states where state tax credits are used as an incentive to encourage taxpayers to contribute money or property to a governmental or charitable entity.  For example, under one program, a taxpayer contributes $100 to a charity and is entitled to a state income tax credit of $50.    One issue that is often raised is whether the taxpayer is also entitled to a federal and state charitable income tax deduction.  In IRS Chief Counsel Advice 201105010, it was noted that the tax benefit of a charitable deduction is not regarded as a return benefit that negates a charitable deduction.  The IRS concluded that state tax credits should be treated the same.  Therefore, the taxpayer is entitled to a charitable deduction in the amount of the contribution, and is not reduced by the amount of the state tax credit.  This is helpful guidance.

IRS Announces New Off-Shore Voluntary Disclosure Program with August 31, 2011 Deadline

February 9, 2011

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On February 8, 2011 the Internal Revenue Service (“IRS”) announced a special voluntary disclosure initiative (“VDP”) designed to bring offshore money back into the U.S. tax system and to help people with undisclosed income from hidden offshore accounts become current with their taxes. The VDP will be available through Aug. 31, 2011 and taxpayers participating in the VDP must file all original and amended tax returns and include payment for taxes, interest and accuracy-related penalties by the Aug. 31 deadline. 

Read more here.

No More Horsing Around

No More Horsing Around

February 3, 2011

Authored by: Keith Kehrer

In PLR 201104066, the IRS revoked the tax-exempt status of an organization formed to guard the purity of a certain breed of horses, promote interest therein, and help fund research on the genetics of the breed.  The organization also maintained a website that contained links to private sellers of such horses.  The IRS concluded that the website links caused the organization’s assets to inure to the benefit of private individuals.  The breeders earn a profit, and private benefit, by being able to sell horses and/or stud services to interested persons, and the organization facilitated these sales.  One lesson for other charities is to use caution when linking to for-profit websites.

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