On July 19, the IRS released its Exempt Organization Newsletter, Issue Number 2013-13. Topics include the following:
On July 19, the IRS released its Exempt Organization Newsletter, Issue Number 2013-13. Topics include the following:
Tax-exempt entities are permitted to sponsor non-qualified deferred compensation plans for select groups of highly compensated employees, managers, directors or officers (i.e., “top hat” plans) under Code Section 457(b). Approximately 200 non-governmental organizations sponsoring these plans will receive a “compliance check“ letter by the end of September 2013, and another 200 in the next 12-month rolling period, from the IRS’s Employee Plans Compliance Unit (“EPCU”). This outreach effort is part of a project recently announced by the IRS designed to:
EPCU is requesting “timely” responses to its request for information (or a response indicating that the compliance request was received in error because the employer does not maintain a 457(b) plan). While the compliance
The Benefits world was rocked last week when it was announced that enforcement of the ACA employer shared responsibility penalties would be delayed for one-year. IRS Notice 2013-45, released late yesterday, July 9, officially confirmed the delay, but provided no real additional guidance. Employers are asking, what exactly this means? Read on for our summary of where things stand.
I. What ACA requirements are delayed in 2014?
On July 3, the IRS released its Exempt Organization Newsletter, Issue Number 2013-12. Topics include the following:
See the details in this article here.
A link to the Treasury’s website with the release here. Update 7/3: A White House blog post on this topic is also available.
Update: We’re still digesting this news, but here’s a summary of the Treasury blog post:
There has been a lot of press concerning social welfare organizations lately, including allegations that many such organizations should not be classified as tax-exempt under Section 501(c)(4) based on their political campaign activities. In response to criticism regarding substantial delay in processing Form 1024 Applications, as well as allegations that conservative organizations were subject to additional IRS scrutiny, the IRS has instituted an optional expedited process for organizations whose Form 1024 Applications have been pending more than 120 days.
Under the optional expedited process, the IRS will approve the Form 1024 Application, thus recognizing Section 501(c)(4) status, if the organization can represent (1) that it has spent and anticipates that it will spend 60% or more of both its total expenditures and total time (employee and volunteer hours) on activities that promote social welfare and (2) that it has spent and anticipates that it will spend less than 40% of both of its total expenditures