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IRS Exempt Organization Newsletter 2013-17

August 16, 2013


On August 16, the IRS released its Exempt Organization Newsletter, Issue Number 2013-17. Topics include the following:

  • IRS website explains tax provisions of the health care law; provides guide to online resources
  • Disclosure of return information
  • IRS web pages provide information on group exemptions and group returns
  • Register for EO workshops
  • IRS open Aug. 30 as cost cutting continues; will reevaluate need for furlough day in September
  • Six good reasons to become a tax volunteer
  • Ten cool reasons to visit IRS.gov in Espanol this summer  
  • IRS Exempt Organization Newsletter 2013-16

    August 13, 2013


    On August 13, the IRS released its Exempt Organization Newsletter, Issue Number 2013-16.

    Political Organizations Filings – July 2013

    While Exempt Organizations’ political organizations disclosure search and download applications are temporarily unavailable, the IRS is providing an alternative database of filings made in July 2013.

    This includes more than 1,000 copies of Forms 8871, 8872 and 990-POL filed by groups. The August filings will be made available in the near future. We anticipate that the IRS will re-launch the database this fall at a date to be determined.

    The IRS regrets any inconvenience as it continues to work through this complex situation to ensure the public disclosure of these documents while appropriately protecting important personal information.

    409A – Is Your Compensation Arrangement Subject to These Rules?

    August 12, 2013


    From BenefitsBryanCave.com

    The 409A rules do not provide a clear roadmap to determine what compensation arrangements are subject to their regime of requirements and restrictions. In this brief video, Brian Berglund provides a description of the approach you should take to evaluate whether your compensation arrangement should be structured to comply with the 409A rules regarding deferral elections, timing of payments and other requirements.

    (You can also view the video by going here.)

    Special Issue – IRS Exempt Organization Newsletter 2013-15

    August 8, 2013


    On August 8, the IRS released a Special Issue its Exempt Organization Newsletter, Issue Number 2013-15.

    Don’t miss the upcoming IRS phone forum: 501(c)(7) Social and Recreational Organizations – How to Stay Tax-Exempt, August 21, 2013 2-3 p.m. ET

    Fraternities, country clubs, hobby clubs and sports clubs all are examples of groups organized for social, recreational and similar nonprofit purposes that are tax exempt under Section 501(c)(7) of the Internal Revenue Code.

    This instructive phone forum will discuss:

    • How they are different from other nonprofits
    • Organizational requirements
    • Operational requirements
    • Required filings
    • Unrelated business income
    • Non-traditional income

    The phone forum is eligible for CPE credits for Enrolled Agents.

    IRS Exempt Organization Newsletter 2013-13

    July 19, 2013


    On July 19, the IRS released its Exempt Organization Newsletter, Issue Number 2013-13. Topics include the following:

  • Upcoming IRS phone forums cover important topics
  • Register for EO workshops
  • Reminder: Tax credit extension for hiring veterans ends December 31
  • Tips for taxpayers who travel for charity work
  • 457(b) Plan Update – IRS Compliance Check On the Horizon

    July 17, 2013


    From BenefitsBryanCave.com

    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:

    • learn more about the operation of these plans,
    • verify that the plans comply with the applicable Code requirements,
    • identify common issues of noncompliance, and
    • recommend ways to remove any “barriers” to compliance.

    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

    Health Care Reform: Where are We Now that ACA’s Employer Mandate Has Been Delayed for One Year?

    July 10, 2013


    From BenefitsBryanCave.com

    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?

    • Employer Mandate:  Employers must offer coverage to employees who work on average 30+ hours per week.
    • Affordability:  Coverage must be affordable (i.e., the employee’s share of the coverage cost cannot exceed 9.5% of the employee’s household income).
    • Minimum Value:  Coverage must provide minimum value (although this requirement is waived, employer must still report whether a plan provides minimum value on the SBC).
    • Certain Reporting Requirements:  Employers

    IRS Exempt Organization Newsletter 2013-12

    July 9, 2013


    On July 3, the IRS released its Exempt Organization Newsletter, Issue Number 2013-12. Topics include the following:

  • IRS announces Optional Expedited Process for certain 501(c)(4) Exemption Applications
  • IRS Nationwide Tax Forums begin next week
  • Check out this summer’s IRS phone forums
  • Register for EO workshops
  • Section 509(a)(3) Supporting Organizations pages updated
  • IRS accepting applications for Low Income Taxpayer Clinic grants
  • IRS Electronic Tax Administration Advisory Committee delivers report to Congress
  • Breaking – Treasury Official Announces Anticipated Delay in Employer Mandate, Reporting Requirements

    July 8, 2013


    From BenefitsBryanCave.com

    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:

    • It will be an additional year before employer and insurer reporting under Code Sections 6055 and 6056 is effective (so the first reports will be due in 2015 rather than in 2014)
    • Proposed regulations on these reporting requirements are expected this summer
    • The IRS encourages voluntary reporting in 2014
    • Since enforcement of Employer Shared Responsibility mandate hinges upon these reports, excise taxes under the mandate will not apply in 2014
    • Formal guidance on the transition period for this delayed enforcement is expected within a week
    • It is not clear whether an employer is required to make efforts toward implementation or do anything