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

We are excited to announce that London based Berwin Leighton Paisner (BLP) is combining with Bryan Cave. The combination will expand our global reach and increase our depth in key markets, creating a firm with approximately 1,600 lawyers in 32 offices across 11 countries in the United States, Europe, the Middle East and Asia.  BLP brings both strength and depth in core practices such as global real estate, international corporate, transactions and tax; private client; litigation, arbitration and investigations; and related areas of expertise; as well as highly rated financial services and financing practices. In addition, BLP is also strong and adds depth in the charity law sector, and like Bryan Cave, takes a team approach to achieve our charity client’s goals. The following is a brief overview of the BLP Charity Practice and approach:

Operating in the not-for-profit sector has never been more challenging – or more exciting: unprecedented

Bryan Cave LLP has once again been recognized as a U.S. News – Best Lawyers® “Best Law Firms” National Tier 1 ranked firm for its work in Trusts & Estates.  Awards are determined using several criteria, including: client evaluations, peer attorney feedback, and, notably, managing partners and practice area chairs’ reviews. Congrats to the Bryan Cave Private Client Group!

File current versions of exemption applications

The IRS reminds people seeking tax-exempt status to use the current version of forms to avoid processing delays. The current version of Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, is dated December 2017, and Form 1024, Application for Recognition of Exemption Under Section 501(a), is dated January 2018.

If you use a prior version of one of these forms, the IRS will return your application and ask you to resubmit using the current version of the form.

User fees 

Revenue Procedure 2018-5 announces the following user fees:

Application Type User Fee Form 1023 $600 Form 1024 Form 1024-A Form 1023-EZ $275 Group exemption letter $2,000

Please submit Form 8718, User Fee for Exempt Organization Determination Letter Request, with group exemption letter requests and exemption applications, other than those filed on Forms

Under Revenue Procedure 2018-15, the IRS generally will not require a new exemption application from a domestic section 501(c) organization that changes its form or place of organization.  Rev. Rul. 67-390 and Rev. Rul. 77-469 are obsoleted.

Revenue Procedure 2018-15 will be in IRB 2018-09, dated February 26, 2018.

The IRS revised Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, and its instructions to help small charities apply for 501(c)(3) tax-exempt status. These revisions don’t change the Form 1023-EZ user fee. Here’s a summary of the revisions we made to the Form 1023-EZ.

• A text box was added to Part III requesting a brief description of the organization’s mission or most significant activities. This change was recommended by the IRS National Taxpayer Advocate and is designed to provide a better understanding of the most significant activities that an organization engages in to further its exempt purposes.
• Questions about annual gross receipts, total assets and public charity classification were added to the Form 1023-EZ. These questions are also on the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ  that organizations must certify they have completed.
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Early Due Dates for W-2, W-3 and Form 1099-MISC 

Employers face a January 31, 2018, due date for filing 2017 Forms W-2 and W-3 with the Social Security Administration. This date applies to both electronic and paper filers.

Form 1099-MISC is due to the IRS and individuals by January 31 when reporting non-employee compensation payments in box 7.

Penalties for failure to file correct information returns or furnish correct payee statements have increased and are now subject to inflationary adjustments. These increased penalties are effective for information returns required to be filed after December 31, 2015.

Form 1098-T Reporting Changes and Limited Penalty Relief for 2017 Returns 

Eligible educational institutions are required to report the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year on Form 1098-T, Tuition Statement.

Announcement 2016-42 provides relief from penalties under Section 6721 and 6722 to 2017 Forms 1098-T.

The Internal Revenue Service reminds taxpayers looking to maximize their tax savings before the end of the year to consider charitable giving. Many taxpayers may already be planning to do so for Giving Tuesday on November 28. Giving money or goods to a tax-exempt charity before December 31 can usually be deducted on that year’s federal income tax return.

This #GivingTuesday, IRS has tips to find tax-deductible options: 

• Donating to disaster recovery efforts or a local shelter?
• Want to know the special rules to get a tax deduction from donating cars, boats and other property?
• Cash or non-cash year-end gifts to charity? What to know for a tax deduction on your IRS return.
• IRA owners over age 70½ – want to know about a different way to give?
• Hoping for a tax-deduction for your Giving Tuesday donation? Itemize or eFile your return

Resources: 

IRS YouTube videos: 

• IRS tool IRS.gov/eoselectcheck