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.

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

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 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.

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:

• W-9 Saves Time and Money Learn Form W-9 basics.
• TIN Matching Program Learn how to avoid costly penalties and expenses from filing invalid Forms 1099.
• What You Need to Know About Backup Withholding BUW refers to the tax withheld from a
  

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