Louis E. Michelson, A Professional Corporation

Providing Legal and Tax Advisory Services to Nonprofit Organizations

Entries Tagged as 'Exempt organizations'

Extended Due Date for Notification by Social Welfare Organizations of Intent to Operate

January 20th, 2016 · Comments Off on Extended Due Date for Notification by Social Welfare Organizations of Intent to Operate · Federal Income Taxes, Uncategorized

Social welfare organization must provide a notification to the IRS of their intent to operate.  This notification requirement is found in new Section 506, which was added to Internal Revenue Code by the Protecting Americans from Tax Hikes Act of 2015 (the “PATH Act”) which was enacted on December 18, 2015. Under the PATH Act: […]

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Streamlined Exemption Application – Being Considered

April 18th, 2014 · Comments Off on Streamlined Exemption Application – Being Considered · private inuremenet, tax exemption

Currently the only way to obtain recognition of 501(c)(3) status is to apply for tax-exemption using IRS Form 1023. The key word is “currently.” A new streamlined application was drafted by the IRS and is being considered for use by small organizations. It was submitted to the Office of Management and Budget for review under […]

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Automatic Revocation of Exemption: In Error?

July 29th, 2012 · Comments Off on Automatic Revocation of Exemption: In Error? · Federal Income Taxes, Loss of Tax-Exempt Staus

Background: The Pension Protection Act of 2006 made two important changes affecting tax-exempt organizations, effective the beginning of 2007.  First, it requires all tax-exempt organizations, other than churches and church-related organizations, must file an annual return with the IRS. That includes small tax exempt organizations with gross receipts of $25,000 or less and had not […]

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When Providing Consulting Services Ruins 501(c)(3) Exemption

July 6th, 2012 · Comments Off on When Providing Consulting Services Ruins 501(c)(3) Exemption · Consulting services, Denial of Exemption, private inuremenet

It is common for a new nonprofit to draw on the experience of its founders.  Is there any reason that a nonprofit can not provide consulting services?  If the new nonprofit seeks to obtain tax-exempt status under 501(c)(3) there are a number of pot-holes to avoid, based on a recent ruling by the Sixth Circuit […]

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Congressional Committee Hearing on Tax-Exempt Organizations

May 11th, 2012 · Comments Off on Congressional Committee Hearing on Tax-Exempt Organizations · Charity, Federal Income Taxes, Governance

Congressman Charles W. Boustany Jr., MD (R-LA), Chairman of the Subcommittee on Oversight of the Committee on Ways and Means, announced on Wednesday, May 16th that the Subcommittee will hold a hearing examining operations and oversight of tax-exempt organizations. This will be the first in a series of hearings by the Subcommittee on the tax-exempt […]

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Revised Publication 577, Tax-Exempt Status for Your Organization

December 19th, 2011 · Comments Off on Revised Publication 577, Tax-Exempt Status for Your Organization · Federal Income Taxes, Loss of Tax-Exempt Staus, Publication 577

The IRS published a revised Publication 577, Tax-Exempt Status for Your Organization.  The “What’s New” section contains the following items: -Automatic revocation for not filing annual return or notice -Redesigned Form 990 and Instructions -Elimination of the advance public charity status -Report  significant new or changed program services or changes to organizational documents -Publication 78 […]

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New Useful Resource: Form 990 Policy Series Memoranda Now Available Online

May 17th, 2011 · Comments Off on New Useful Resource: Form 990 Policy Series Memoranda Now Available Online · Federal Income Taxes, Form 990, Governance

The Form 990 Policy Series Memoranda, developed to respond to governance questions in the new Form 990, are now available online!  They can be accessed, without charge, at the web site of Public Counsel, the nation’s largest pro bono law firm.  See http://www.publiccounsel.org/useful_materials?id=0025 or go to publiccounsel.org, click on Practice Areas, then Community Development, then […]

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Specialized PTIN Information for Preparers of Exempt Organization Tax Forms

April 1st, 2011 · Comments Off on Specialized PTIN Information for Preparers of Exempt Organization Tax Forms · Uncategorized

The IRS published on IRS.gov additional PTIN information for those who prepare exempt organization tax forms.   The following was excerpted from the IRS website: Who Needs a PTIN? All tax return preparers who are paid to prepare or assist substantially in the preparation of any U.S. federal tax return, claim for refund or other tax […]

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