On March 14, the IRS released its Exempt Organization Newsletter, Issue Number 2012-06. Topics include the following:
- Reliance for Contributors and Grantors
- Removing an Organization from the Auto-Revocation List
- Select Check Data Alerts
- IRS Encourages Employers to Check Out the Small Business Health Care Tax Credit
- IRS and Treasury Invite Recommendations for 2012-13 Guidance Priority List
- Winter 2012 Statistics of Income Bulletin Features Exempt Organizations Topics
- Check Out the IRS YouTube Channel
- IRS to Co-Sponsor Conference on Nonprofit Governance
1. Reliance for Contributors and Grantors
For deductibility and other purposes specified in Revenue Procedure 2011-33, contributors and grantors can rely on the exempt status and foundation status of an organization as posted on either the Exempt Organizations Select Check Pub 78 data page or the Statistics of Income (SOI) Tax Stats – Exempt Organizations Business Master File Extract (EO BMF) (unless they have specific knowledge to the contrary). Prior to the introduction of EO Select Check, the electronic Publication 78 and EO BMF were updated on different schedules, causing some confusion. Now both the Select Check Pub 78 Data and EO BMF are updated monthly, but not necessarily on the same day.
To assist you in your searches, the IRS is now publishing the date the data was posted to each of the three applications on EO Select Check, as well as on EO BMF. For further information, read this FAQ and review the Select Check Search Tips.
2. Removing an Organization from the Auto-Revocation List
Some organizations have asked why their name has not been deleted from the auto-revocation list after they have reapplied and their tax-exempt status has been reinstated. The auto-revocation list is the official IRS record of organizations that have lost their exempt status for failing to file for three consecutive years. Organizations will not be deleted from the list – even if they subsequently reapply for exemption and are reinstated. See FAQ.
If, however, an organization provides documentation to show that it is listed erroneously, either because the organization filed or had an IRS determination of no filing requirement, its name will be deleted. For additional information, see these FAQs newly reorganized into helpful categories.
A new feature, Data Alerts, provides additional details for power download users on the EO Select Check page. If you notice any data inconsistencies, contact Customer Account Services (CAS) at 1-877-829-5500.
Related Link:
IR-2012-34, IRS Creates Online Search Tool for Easier Check On Information About Exempt Organizations
4. IRS Encourages Employers to Check Out the Small Business Health Care Tax Credit
With the calendar year 990 filing due date and business tax filing deadlines fast approaching, the Internal Revenue Service encourages small employers that provide health insurance coverage to their employees to check out the small business health care tax credit and then claim it if they qualify.
The recently-revamped Small Business Health Care Tax Credit page on IRS.gov is packed with information and resources designed to help small employers see if they qualify for the credit and then figure it correctly. These include a step-by-step guide for determining eligibility, examples of typical tax savings under various scenarios, answers to frequently-asked questions, a YouTube video and a webinar.
5. IRS and Treasury Invite Recommendations for 2012-13 Guidance Priority List
Notice 2012-25 invites public comment on recommendations for items that should be included on the 2012-2013 Guidance Priority List. The Treasury Department’s Office of Tax Policy and the IRS use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance.
6. Winter 2012 Statistics of Income Bulletin Features Exempt Organizations Topics
The IRS recently released the Winter 2012 Statistics of Income SOI Bulletin. This issue includes a number of articles on subjects of interest to tax-exempt organizations including Split-Interest Trusts, Unrelated Business Income Tax Returns and Domestic Private Foundations
7. Check Out the IRS YouTube Channel
Did you know that the IRS YouTube Channel features tax tips on many topics, including a number of subjects of interest to tax-exempt organizations? Check out videos on charitable contributions, classification as employees and independent contractors, the small business health care tax credit, and the annual filing requirements for small tax-exempt organizations and many more.
8. IRS to Co-sponsor Conference on Nonprofit Governance
The IRS, Georgetown Law School and Independent Sector will co-sponsor a program on Nonprofit Governance: Empowering Board Leadership on Wednesday, April 18, 2012 at the Georgetown Law Center. Find more information and register online today.
