Louis E. Michelson, A Professional Corporation

Providing Legal and Tax Advisory Services to Nonprofit Organizations

Federal Income Tax Exemption

Non-Profit Entity Selection, Formation of a Charitable Non-Profit Entity and Obtaining Recognition of Tax-Exempt Status – Instructional Videos

The following are the free instructional video and the links the videos:

● New Form 1023:  Federal Exemption Application and Its New Electronic Filing:  see the following link.

● Advantages and Disadvantages of Non-Profit Entity Selection: see the following link.

● Formation of a Charitable Non-Profit Entity: see the following link.

● Obtaining Recognition of Tax-Exempt Status: see the following link.

● How to Rescue a Troubled Nonprofit: Federal Income Tax Considerations: see the following link.

● Tax-Exempt Status Reinstatement:  An Update on the New Procedures:  see the following link.

Form 990 Update and Unrelated Business Income 

The following is a link to a pdf of powerpoint on this topic:  see the following link.

Nonprofit Joint Ventures – Partnering with For-Profit Organizations

The following is a link to a pdf of a powerpoint on this topic:  link.

Automatic Revocation of Exemption:  In Error?

The IRS publishes a list of organizations that were previously recognized as exempt which are no longer eligible exempt.  The IRS published Frequently Asked Questions if you believe your organization was erroneously listed as revoked.   For balance of this post see the following link.

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

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 in Asmark Institute, Inc.  For balance of post see following link.

Reporting Changes to the IRS

When must a tax-exempt organization report changes to the IRS?  The events that trigger a reporting requirement to the IRS are changes in an organization’s name or address and structural and operational changes.  For balance of post see the following link.


Termination of Private Foundation Status

If you are a private foundation that is considering stopping your activities, there are right ways and wrong ways to do this most important step.   Depending on how it is done, the foundation there may need to notify the IRS of intent to terminate and pay a termination tax.  For balance of post see the following link.

Reinstated Exemption and Publication 78

The IRS recently clarified the delay between the time an organization has its exemption reinstated and when Publication 78 is updated.    For balance of post see the following link.

IRS Identifies Organizations that are No Longer Exempt

On June 8, 2011 the Internal Revenue Service announced that it has released a listing of approximately 275,000 organizations that under the law have automatically lost their tax-exempt status because they have not filed annual reports as legally required for the past three years.  For balance of post see the following link.