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Update to Notice 2020-18, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, Related to Gift and Generation-Skipping Transfer Tax Filing and Payment Deadlines

March 27, 2020

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Notice 2020-20; Federal income tax filing and payment relief on account of Coronavirus Disease 2019 (COVID-19) emergency. This notice provides relief in addition to the relief provided in Notice 2020-18, issued on March 20, 2020. In this notice, the Treasury Department and IRS are providing relief to all taxpayers who have Federal gift (and generation-skipping transfer) tax returns and payments due on April 15, 2020. The April 15, 2020 deadline is postponed to July 15, 2020. Associated interest, additions to tax, and penalties for late filing or late payment will be suspended until July 15, 2020.

Notice 2020-20 will be in IRB 2020-16, dated April 13, 2020.

TE/GE Fiscal Year 2019 Accomplishments Letter

March 23, 2020

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Tax Exempt and Government Entities Fiscal Year 2019 Accomplishments Letter

Highlights of our accomplishments during FY 2019, all of which support the goals of the IRS Strategic Plan for 2018-2022, include:

  • Expanded the use of Pay.gov to make payments easier
  • Expanded Employee Plans’ (EP’s) self-correction and voluntary correction programs to improve voluntary compliance
  • Expanded the EP determination letter program to encourage compliance
  • Expanded educational efforts, soft letters and compliance checks to increase voluntary compliance
  • Released additional educational videos and articles and participated in many outreach events to empower taxpayers and encourage compliance

You can also review the TE/GE Fiscal Year 2020 Program Letter, which explains our priorities for the current fiscal year.

Utilizing Employer-Sponsored Foundations to Alleviate Employee Hardship

Employers are looking for ways to assist employees and their dependents experiencing financial hardship due to the Coronavirus. One potential tax-advantaged method is the use of an existing or newly formed employer-sponsored foundation which qualifies for exemption under Section 501(c)(3).

Under established IRS guidance set forth in Publication 3833, an employer-sponsored foundation may operate a fund which provides financial assistance to employees who experience financial hardship due to a qualifying event, including certain federally declared disasters or emergencies which now include circumstances resulting from the Coronavirus. If the conditions below are satisfied, persons (including the employer and other employees) making donations to the foundation are entitled to a charitable deduction under Section 170 of the Code and financial relief payments made to employees are not included in taxable compensation:

  • The class of beneficiaries must be large or indefinite (a “charitable class”) – for example, all current and future employees of
  • Form 1023 Revisions and Required Electronic Submission

    February 4, 2020

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    The IRS is revising Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, and its instructions, to help charities apply for 501(c)(3) tax-exempt status.

    Effective January 31, 2020, applications for recognition of exemption on Form 1023 must be submitted electronically online at www.pay.gov. The IRS will provide a grace period during which it will continue to accept paper versions of Form 1023 (Rev. 12-2017).

    The user fee for Form 1023 will remain $600 for 2020. Applicants must pay the user fee through www.pay.gov when submitting the form. Payment can be made directly from a bank account or by credit/debit card.

    IRS News Release on the Taxpayer Certainty and Disaster Tax Relief Act provisions

    The following provisions may apply to tax-exempt organizations’ current and previous tax years:

    Client Alert – Section 4940 Excise Tax Simplification

    January 21, 2020

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    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.

    Upcoming professional development class offered by the NPML Program at UMSL: Grants Research

    December 18, 2019

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    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

    Recent legislation requires tax-exempt organizations to e-file forms

    December 17, 2019

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    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 Fiscal Year 2020 Program Letter

    October 17, 2019

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    TE/GE Fiscal Year 2020 Program Letter

    October 17, 2019

    Authored by: Keith Kehrer

    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.

    Proposed regulations on reporting requirements; Penalty relief for reliance on Rev. Proc. 2018-38; CP2100 Notices; IRS videos; Rev. Proc. 2019-39

    October 4, 2019

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    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:

    New private delivery/express mail address for Exempt Organizations submissions

    September 30, 2019

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    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