The Fiscal Year 2019 Program Letter explains TE/GE’s compliance program consisting of:
The Program Letter (referred to as a Work Plan or Priority Letterin prior fiscal years) outlines TE/GE’s commitment to improving customer experience and reducing taxpayer burden, while cultivating a strong work force.
Similar to the FY 2017 Accomplishments summary, TE/GE will release a summary of its FY 2018 accomplishments when all the data is available.
Congrats to our Team Members, Gino Serra, Frank Wolff, and Keith Kehrer, for inclusion in the 2019 Edition of The Best Lawyers in America© in the Nonprofit / Charities Law category. Congrats to our Team Members Kimberly Civins, Michael Bland, Renee Gabbard, Shannon Barks, John Ready, Steve Daiker, Larry Brody, John Schaperkotter and Kathy Sherby for inclusion in the 2019 Edition of The Best Lawyers in America© in the Trusts and Estates category.
The Best Lawyers in America© is the oldest lawyer-rating publication in the U.S., and inclusion in Best Lawyers is based entirely on peer-review.
To simplify compliance for grantors and contributors to tax-exempt organizations, the IRS recently issued an updated revenue procedure (Rev. Proc. 2018-32) that combines previously scattered guidance on deductibility and reliance issues. The new revenue procedure explains when grantors and contributors may rely on a listing of an organization on an IRS database of organizations eligible to receive contributions under Sec. 170 for purposes of determining whether the grants or contributions may be deductible under Sec. 170.
Searchable Databases
The IRS maintains and updates two different publicly available databases on organizations eligible to receive tax-deductible contributions under Sec. 170. The first lists organizations that are eligible to receive tax-deductible charitable donations (eligible organization list), and the second is an extract of certain information concerning tax-exempt organizations from the IRS electronic Business Master File (the EOB MF Extract).
Historically, the eligible organization list was maintained in print form in IRS Publication 78.
Many employers hire third-party payroll service providers to perform their payroll processing functions and tax-related duties, including making employment tax deposits.
Watch Monitoring your outsourced payroll duties on EFTPS to learn about:
The employer, generally, remains liable for any unpaid employment taxes, including any penalties and interest resulting from any underpayment, even if they use a third-party payroll service provider. Note, this may not apply to employers using Certified Professional Employer Organizations (CPEO).
Please visit Outsourcing payroll and third-party payers andwww.EFTPS.gov for additional information.
The 10 members of the ACT presented their 2018 report to the IRS in a public meeting in Washington, DC on June 7, 2018, on five issues:
The Internal Revenue Service released a new five-year Strategic Plan outlining goals to improve taxpayer service and tax administration.
The Fiscal Year 2018-2022 IRS Strategic Plan will serve as a roadmap to help guide the agency’s programs and operations. The plan will also help meet the changing needs of taxpayers and members of the tax community.
The strategic plan, developed with input from external partners as well as IRS employees, focuses on six goals that will help improve customer service:
EP and EO participating in 2018 IRS Nationwide Tax Forums
Employee Plans and Exempt Organizations will participate in the 2018 IRS Nationwide Tax Forums in five cities starting in July. The forums offer three days of seminars and workshops featuring speakers from both the IRS and tax practitioner organizations. In addition to getting the latest tax information, tax professionals can earn continuing education credits for their attendance.
Thousands of people have lost millions of dollars and their personal information to tax scammers using regular mail, phone, or email.
The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Recognize the telltale signs of a scam. See: How to know it’s really the IRS calling or knocking on your door
Updated forms and publications:
The IRS introduced a new online tool designed to provide faster, easier access to publicly available information about exempt organizations.
The new Tax Exempt Organization Search (TEOS) replaces EO Select Check, a more limited tool available since 2012 that focused primarily on providing information on an organization’s tax-exempt status. Among the enhancements, the new TEOS tool includes images of newly-filed 990 forms and it’s mobile friendly so you can access it using smartphones or tablets.
“This new tool provides taxpayers an easy way to get information about charitable organizations,” said Acting IRS Commissioner David Kautter. “Tax-exempt organizations play a critical role in our nation, and this will provide greater insight for people considering donations.”
Many tax-exempt organizations must file information returns by May 15; do not include
Join the IRS for a National Paycheck Checkup Thunderclap
We invite you or your group to join @IRSnews in support of the IRS Thunderclap effort promoting a national “Paycheck Checkup.” Following major tax law changes, workers should review their withholding to make sure they have the right amount of tax taken out of their paychecks.
Form 990 processing changes
As of January 8, the IRS is returning Form 990 series returns filed on paper – and rejecting electronically filed returns – when they are incomplete or the wrong return. IRS.gov answers the question What happens if my Form 990 is missing information or a schedule, or is the wrong return?
Form 990-EZ reminders
Tax-exempt organizations with annual gross receipts under $200,000 and assets under $500,000 (at the end of the reporting period) can use Form 990-EZ, Short Form Return of Organization Exempt from
Use Form 1024-A to Apply for Recognition of Exemption under IRC Section 501(c)(4)
Organizations that choose to apply for recognition of exempt status under Internal Revenue Code (IRC) Section 501(a) as an organization described in Section 501(c)(4) should use the new Form 1024-A, Application for Recognition of Exemption under Section 501(c)(4) of the Internal Revenue Code.
Organizations seeking recognition of exempt status under Section 501(a) as an organization described in Section 501(c)(2), (5), (6), (7), (8), (9), (10), (12), (13), (15), (17), (19) or (25) will continue to use Form 1024, Application for Recognition of Exemption Under Section 501(a).
Form 1024-A doesn’t satisfy an organization’s separate requirement to notify the IRS that it’s operating under Section 501(c)(4). Instead, use Form 8976, Notice of Intent to Operate Under Section 501(c)(4).
Revenue Procedure 2018-5
Revenue Procedure 2018-5 simplifies the
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