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.

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

Redesigned Charities and Nonprofits landing and associated webpages launched

Various Charities and Nonprofits webpages have been redesigned to improve organization, design and navigation using data analytics and user testing.

Charitable hospitals under the Affordable Care Act – Section 501(r)

The IRS updated webpages detailing four additional requirements under Internal Revenue Code Section 501(r) that must be met by charitable hospitals tax-exempt under Section 501(c)(3). Watch this Overview of Requirements for Charitable Hospitals under Section 501(r) presentation.

TE/GE Issue Snapshots provide guidance to IRS employees working hospital cases:

• Hospital Definition: Sections 509(a)(1) and 170(b)(1)(A)(iii) versus 501(r)
• Financial Assistance Policy
• Section 4959 Excise Tax and Noncompliant Facilities Income Tax

New IRS Tax Withholding Estimator Tell your employees about the new IRSTax Withholding Estimator. The new taxpayer-friendly tool on IRS.gov helps workers tailor the amount of income tax their

Beware of fake charities IRS cautions taxpayers on scams involving disasters, charitable causes andencourages taxpayers to donate to recognized charities to help disaster victims. IRS’ annual “Dirty Dozen” also lists a variety of common scams taxpayers may encounter.

Understanding Disaster Relief Tax Law and Contribution Deductibility The IRS offers two courses – Disaster Relief – Parts 1 and II – for charitable organizations providing disaster relief. Topics include how charities may provide disaster relief, deductibility of contributions and tax treatment of relief recipients. Organization leadership and volunteers should review the Tax-Exempt Organization Workshop that includes important information on the benefits, limitations and expectations of tax-exempt organizations.

Revisions made to IRS Online Registration System for 501(c)(4) Certification Organizations required to submit Form 8976, Notice of Intent to Operate Under Section 501(c)(4), will notice a new look and improved navigation at the Online Registration System for 501(c)(4)

The IRS reminds Form 990-T Corporate Filers of new tax law provisions that could affect the tax rate applicable to their UBTI. Specifically, fiscal 2017 corporate filers should apply a blended rate to their UBTI for the entire 2017 taxable year, including any UBTI from amounts paid or incurred after December 31, 2017 that increase UBTI under new Section 512(a)(7).

The Tax Cuts and Jobs Act (TCJA) introduced a flat 21 percent corporate tax rate for tax years beginning after December 31, 2017. However, corporations with fiscal tax years beginning in 2017 and ending in 2018 calculate their tax by blending the rates in effect before 2018 with the rate in effect after 2017. An exempt organization that’s a corporation with a 2017 fiscal year calculates its tax liability by applying the pre-2018 rate and the post-2017 rate to the corporation’s taxable income for the entire tax year. It prorates

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.

“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.

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

• Form 990-series returns are due on the 15th day of the fifth month after an organization’s tax year ends
• For an extension of time to file, use Form 8868, Application for Automatic Extension of Time to File an Exempt Organization Return
• What happens if my Form 990 is missing information or a schedule, or is the wrong return?
• To avoid errors, file electronically using one of the eFile business providers

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

• The Small to Mid-Size Tax Exempt Organization Workshopis a great resource for charities at StayExempt.irs.gov. 

IRS Nationwide Tax Forums offer:

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

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