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Clarification to EO Update issued May 6, 2019

May 7, 2019

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“Issue 1” in yesterday’s EO Update stated that organizations should report their correct organization type. The IRS wishes to clarify that the intent of this tip was to remind filers to accurately and fully complete information about their public charity status on Schedule A. As indicated in the instructions to Schedule A, the public charity status an organization indicates on Schedule A can be the same as stated in the organization’s tax-exempt determination letter from the IRS (“exemption letter”) or subsequent IRS determination letter, or it can be different. SeeInstructions for Schedule A for more information.

Form 990-series information returns are due May 15

April 12, 2019

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Many tax-exempt organizations must file information returns by May 15

Online training for small and mid-size 501(c)(3) organizations

IRS Nationwide Tax Forums offer:

  • Continuing education via educational seminars
  • Case Resolution Program
  • Opportunities to talk with IRS subject

BCLP Awarded “Private Client Team of the Year 2019” by Legal Business Awards

April 4, 2019

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The Legal Business Awards recently honored Bryan Cave Leighton Paisner LLP with its “Private Client Team of the Year” award for 2019.  The event took place at the Grosvenor House in London on March 28, 2019.

BCLP received the award based on a combination of factors, including:

  • the merger of its legacy Berwin Leighton Paisner / Bryan Cave teams into a global private client practice
  • the firm’s Middle East work, including the Shari’a advice, and UAE / ADGM work
  • its ability to work with clients across the world, with a focus Europe, USA, Middle East, and Asia
  • the range of work the firm can cover, from high net worth individuals, to wealth management institutions and family offices
  • its Family Asset Protection and divorce practice
  • its BCLP Residential practice
  • its advice on the treatment of complex Liechtenstein foundations by HMRC
  • the firm’s wider Private Wealth offering

IRS Revises EIN Application Policy, Now Requires an Individual to be Listed as the “Responsible Party”

The IRS announced on March 27, 2019 that in an effort to enhance security and improve transparency, the “responsible party” on applications for an employer identification number (EIN) must now be a natural person.

An EIN is the tax identification number assigned to entities such as trusts, estates, retirement plans, LLCs, partnerships, and corporations.  An entity obtains such a number by completing the IRS Form SS-4 or an online application.  One question in the application process asks the applicant to identify the “responsible party,” which the IRS defines as “the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity.” In deciding who to list as the responsible party, the IRS encourages applicants to consider whether the party has “a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the person, directly

Group Ruling Holders will no longer receive lists of parent and subsidiary accounts from IRS

March 21, 2019

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As of January 1, 2019, the IRS stopped mailing lists of parent and subsidiary accounts to central organizations (group ruling holders) for verification and return. Central organizations with accounting periods ending June 30, 2019, must submit updates by April 1, 2019. See Group Exemption Rulings and Group Returns for details.

Job opportunities at the IRS, Tax Exempt & Government Entities

March 6, 2019

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The IRS Tax Exempt & Government Entities Division (TE/GE) has a wide range of job opportunities available. Apply today to become part of our team and help us oversee a vital part of the nation’s tax system.

1. Are you a recent graduate with qualifying accounting credits? Apply today to become a Revenue Agent through our Pathways Recent Graduates program. In this job, you’ll help taxpayers understand and comply with their tax obligations and apply tax laws with integrity and fairness.

IRS Pathways Recent Graduate Program (Internal Revenue Agent)

Multiple Locations

Starting at $33,394 (GS 05-09)

This job is open 02/25/2019 to 03/15/2019

2. Apply today to become a Tax Compliance Officer. As a TCO, you’ll plan, coordinate and conduct independent Correspondence Examinations and related investigations of individual and/or business taxpayers. You’ll also provide tax law and tax-related accounting assistance to taxpayers.

Tax Specialist (Tax Compliance Officer-TCO) **12

TE/GE Fiscal Year 2018 Accomplishments Letter

February 1, 2019

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TE/GE is pleased to announce the release of the Tax Exempt and Government Entities Fiscal Year 2018 Accomplishments Letter that:

  • Contains information on TE/GE’s contributions to the tax administration system
  • Lists each TE/GE function’s accomplishments under the six portfolio programs of our compliance program

You may also want to review the TE/GE Fiscal Year 2019 Program Letter, which explains TE/GE’s compliance program consisting of:

  • Compliance strategies
  • Data-driven approaches
  • Referrals, claims and other casework
  • Compliance contacts
  • Determinations
  • Voluntary compliance and other technical programs
  • IRS issues guidance for determining nondeductible amount of parking fringe expenses and unrelated business taxable income; provides penalty relief to tax-exempt organizations

    December 11, 2018

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    WASHINGTON – The Internal Revenue Service today issuedinterim guidance regarding the treatment of qualified transportation fringe benefit expenses paid or incurred after Dec. 31, 2017.

    The new rules assist taxpayers in determining the amount of parking expenses that are no longer tax deductible. They also help tax-exempt organizations determine how these nondeductible parking expenses create or increase unrelated business taxable income (UBTI).

    The IRS acknowledges that this guidance falls late in the year and taxpayers that own or lease parking facilities may have already adopted reasonable methods in 2018 to determine the amount of their nondeductible parking expenses. Taxpayers may rely on the guidance or, until further guidance is issued, use any reasonable method for determining nondeductible parking expenses related to employer-provided parking. 

    A key part of this guidance is a special rule, enabling many employers to retroactively reduce the amount of their nondeductible parking expenses. Under

    EO Update: e-News for Charities & Nonprofits

    November 16, 2018

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    Latest webcasts for charities and nonprofits

    Four new presentations are available for 501(c)(3) organizations. Additional charities and nonprofits topics are onIRSvideos.gov.

    Recent IRS notices affecting Exempt Organizations

    • Notice 2018-55 Tax reform imposes a 1.4 percent excise tax on the investment income of certain educational institutions.
    • Notice 2018-67 An exempt organization with more than one unrelated trade or business must calculate unrelated business taxable income separately for each trade or business.

    Issue snapshots

    Issue Snapshots are IRS employee job aids that provide analysis and resources along with audit tips and issue indicators for technical tax issues. Visit Issue Snapshots for a complete listing of issue snapshots for Exempt Organizations.

    Centralized IRS advisory committee; 2019 retirement plans and IRA limits

    November 2, 2018

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    IRSAC expands to cover more areas of the IRS; IRPAC and ACT to join centralized advisory committee in 2019 The IRS announced that the Internal Revenue Service Advisory Committee’s (IRSAC) role will expand in 2019 to have a wider portfolio and will incorporate the Information Reporting Program Advisory Committee (IRPAC) and the Advisory Committee on Tax Exempt and Government Entities (ACT). Although ACT will no longer exist, the IRS emphasizes that TE/GE issues will remain a priority area in the expanded IRSAC.

    401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000 The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.