On August 30, the IRS released its Exempt Organization Newsletter, Issue Number 2013-18. Topics include the following:
- IRS describes Code Sec. 4959 excise tax reporting for charitable hospitals
- EO’s latest changes to implement the TIGTA recommendations
- IRS offers alternative solution for political organizations filings made July/August
- Sign up for upcoming IRS Exempt Organizations phone forums
- Review the 2013–2014 Priority Guidance Plan
- Register for EO workshops
- e-Services unavailable this weekend
1. IRS describes Code Section 4959 excise tax reporting for charitable hospitals
IRS describes Code Sec. 4959 excise tax reporting for charitable hospitals
The IRS has issued temporary and proposed regulations under sections 6011 and 6071 for charitable hospital organizations on how to report any Code Sec.4959 excise tax for failing to meet the community health needs assessment (CHNA) requirements described in Code Sec. 501(r)(3).
The temporary regulations state that a charitable hospital organization liable for the Code Sec. 4959 excise tax must file a return on Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code. The form must be filed by the 15th day of the fifth month after the end of the charitable hospital organization’s tax year during which the liability under Code Sec. 4959 was incurred.
The proposed regulations provide that written or electronic comments and requests for a public hearing must be received by November 13, 2013.
2. EO’s latest changes to implement the TIGTA recommendations
3. IRS offers alternative solution for political organizations filings made July/August
While Exempt Organizations’ political organizations disclosure search and download applications are temporarily unavailable, the IRS has an alternative solution for filings made in July and August 2013.
These filings include copies of Forms 8871, 8872 and 990 filed by 527s. We anticipate the IRS will re-launch its database this fall, at a date to be determined.
The IRS regrets any inconvenience as it continues to work through this complex situation to ensure the public disclosure of these documents while appropriately protecting important personal information.
4. Sign up for upcoming IRS Exempt Organizations phone forums
- Exempt Organizations and Employment Taxes (Sept. 10, 2 p.m., EDT)
Even organizations that don’t use paid workers on a regular basis should be aware of employment tax issues.
- Stay Exempt: A guide for charitable organizations with changing leadership (Sept. 18, 2 p.m. EDT)
Tax-exempt organizations must be organized and operated exclusively for exempt purposes.
5. Review the 2013–2014 Priority Guidance Plan
The 2013–2014 Priority Guidance Plan contains 324 projects that are IRS priorities through June 2014, including:
- Updating Revenue Procedure 2011-33 for EO Select Check
- Guidance under section 501(c)(4) relating to measurement of an organization’s primary activity and whether it is operated primarily for the promotion of social welfare, including guidance relating to political campaign intervention
- Additional guidance on section 509(a)(3) supporting organizations (SOs)
- Final regulations under §4944 on program-related investments.
6. Register for EO workshops
Register for upcoming workshops for small and medium-sized 501(c)(3) organizations:
- Sept. 9 – St. Paul, MN
Hosted by Hamline University
- Sept. 10 – Minneapolis, MN
Hosted by University of St. Thomas
- Sept. 27 – Albuquerque, NM
Hosted by University of New Mexico
- October 16-17 – Lakeland, FL
Hosted by Florida Southern College
7. e-Services unavailable this weekend
There is a planned power outage scheduled this weekend from Saturday, Aug. 31 at 5 p.m. EDT through Tuesday, Sept. 3 at 12:00 p.m. All e-Services products, including the Transcript Delivery System, e-file Application, Registration, Disclosure Authorization, Electronic Account Resolution and TIN Matching will be unavailable during this time.
There will be several changes made to e-services while the system is unavailable including the retirement of Disclosure Authorization (DA) and Electronic Account Resolution (EAR) and TIN Matching reengineering. Additional information for TIN Matching Re-engineering is available on the e-services page under Tax Professionals.
As with any upgrade, users could experience intermittent downtime for the first few days following implementation. If you experience problems, you may contact the e-help Desk at 866-255-0654.