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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:

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

EO Update: e-News for Charities & Nonprofits

January 21, 2021

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IRS webinar: File Error-Free Form 1023-EZ

The Tax Exempt and Government Entities Division invites you toregister for the free File Error-Free Form 1023-EZ webinar on Thursday, February 4, 2021; 1 p.m. Eastern Time.

This webinar is designed to help smaller organizations that are filing for tax exemption determine:

  • Who can use Form 1023-EZ to apply for tax exemption
  • How to submit the form
  • Differences between Form 1023 and Form 1023-EZ
  • Form 1023-EZ eligibility requirements

For further details, see Webinars for Tax Exempt & Government Entities.

IRS revises Form 1024-A, application for Section 501(c)(4) tax-exempt status as part of ongoing efforts to improve service

IRS news release: As part of ongoing efforts to improve service for the tax-exempt community, the Internal Revenue Service issued the revised Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) and its instructions to allow electronic filing.

Mandatory E-filing

Expanded Tax Benefits for Giving to Charity, 2020 Forms 990-T and 4720 Revisions and Other News

December 18, 2020

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Year-end reminder: Expanded tax benefits help individuals and businesses give to charity during 2020 

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

The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted last spring, includes four temporary tax changes that are designed to help people and businesses who give to charity this year. Here is a rundown of these key changes. 

Update on Mandatory E-Filing in 2021

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. 

  • Tax Year 2020 Forms 990-T & 4720 Are Being Revised and Will be Available for E-filing in 2021

In 2020, the IRS continued to accept paper Form 990-T, Exempt Organization Business Income

Special $300 deduction for cash donations; digital signatures; National Tax Security Week

December 15, 2020

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Special Tax Deduction for Cash Donations to Charities in 2020

In the latest post on A Closer Look, Tax Exempt and Government Entities Commissioner Edward Killen reminds taxpayers there’s a special deduction for cash donations of up to $300 to a qualified charity in 2020. This $300 deduction is designed for taxpayers who take the standard deduction and aren’t normally able to deduct their donations.

Before making a donation, use the Tax Exempt Organization Search (TEOS) tool on IRS.gov/TEOS to make sure the charitable organization is eligible for tax-deductible donations.

The post also includes several other important reminders for taxpayers and charities, along with information and links to other temporary provisions of the relief provided in the CARES Act.

IRS Accepting Digital Signatures and Emailed Documents

The IRS issued a memorandum (PDF) that extends (through June 30, 2021) IRS employees’ ability to accept:

  • Images of signatures

Tax Exempt & Government Entities FY 2021 Program Letter

November 5, 2020

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The Tax Exempt & Government Entities (TE/GE) FY 2021 Program Letter (PDF) lists our priorities for this new fiscal year. We’ll also use our new Compliance Program and Priorities webpage to provide information about additional priorities at the end of each quarter during the fiscal year.

Our FY 2021 compliance program and prioritiesalign with the IRS Strategic Goals:

  • Strengthen Compliance Activities
  • Improve Operational Efficiencies
  • Maintain a Taxpayer-Focused Organization
  • Ensure Awareness and Collective Understanding
  • Leverage Technology and Data Analytics
  • Develop Our Workforce

We’ll release a summary of our FY 2020 accomplishments when all the data is available. You can also view our annual program (or work plan) and accomplishment letters for previous years.

Annual filings, user fees and electronic filing mandates

July 16, 2020

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Annual filings and tax returns/payments due July 15, 2020

The extended deadline for a variety of information and tax returns and many tax payments is July 15, 2020. If you are unable to meet the July 15 deadline, you may want to review the extension procedures for exempt organization returns and information on the penalties for not filing.

EO user fee changes effective July 1, 2020

Revenue Procedure 2020-5 included user fee changes for certain miscellaneous determination requests submitted on Form 8940 that are effective July 1st.  See Appendix A of Rev. Proc. 2020-5 for a schedule of user fees.

Electronic filing mandate for Forms 990 and 990-PF

Effective for tax years beginning after July 1, 2019, the Taxpayer First Act requires organizations exempt from taxation under section 501(a) to file their annual Form 990 and Form 990-PF returns electronically,

Proposed changes to group exemption letter program, UBTI ‘silo’ rules and more

June 15, 2020

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IRS solicits public comments on proposed changes to group exemption letter program; will temporarily stop accepting requests for group exemption letters on June 17, 2020 

Notice 2020-36 contains a proposed revenue procedure that sets forth updated procedures under which recognition of exemption from federal income tax for organizations described in Section 501(c) of the Internal Revenue Code may be obtained on a group basis for subordinate organizations affiliated with and under the general supervision or control of a central organization. The IRS requests comments on all aspects of the proposed revenue procedure, including applicable grandfather and transition rules. Comments should be submitted on or before August 16, 2020.

Pending publication of the final revenue procedure in the Internal Revenue Bulletin, Rev. Proc. 80-27 continues to apply. However, the IRS will not accept any requests for group exemption letters beginning June 17, 2020, until publication of the final revenue procedure