Nonprofit Law Matters

Category Archives: AG, IRS, FTB, & Property Tax Proceedings

Subscribe to AG, IRS, FTB, & Property Tax Proceedings RSS Feed

System Outages Cause Delays for Filing Form 8976; IRS Offers to Help Affected Organizations

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, IRS, Nonprofit Governance & Ethics, Tax Treatment of Lobbying & Political Activities, Uncategorized

The initial deadline for new self-declared 501(c)(4) organizations to notify the IRS of their existence was September 6.  However, system outages on that day, and since, caused delays that may have prevented organizations from filing on time. The IRS released a statement today promising to “work with you to ensure that you are not subjected… Continue Reading

Section 501(c)(4) Notice Requirement: IRS Implements New Notice System for Organizations Claiming Exemption Under Section 501(c)(4), Announces Updated Compliance Deadlines

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, IRS, Nonprofit Structures, Relationships & Transactions, Tax Treatment of Lobbying & Political Activities

The IRS has finally caught up with Congress with respect to the new notice requirement for new organizations claiming exemption under Section 501(c)(4).  Narrowly (?) missing its self-imposed July 1 deadline for implementing this requirement, the IRS last week released new temporary (and proposed) regulations, a Revenue Procedure (Rev. Proc. 2016-41) explaining the notification system,… Continue Reading

IRS to Roll Out New Section 501(c)(4) Notice System on July 1?

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, IRS, Nonprofit Structures, Relationships & Transactions, Tax Treatment of Lobbying & Political Activities

A while back, we blogged about a new notification requirement for organizations claiming exemption under Section 501(c)(4) imposed by Congress’s adoption last December of the PATH Act of 2015.  The Path Act created a new section of the Internal Revenue Code, Section 506, which requires new and certain existing (see below) Section 501(c)(4) organizations to… Continue Reading

New Law Eases Dissolution of Inactive California Nonprofit Corporations.

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, IRS, FTB & Attorney General Controversies, Nonprofit Governance & Ethics

California’s nonprofit sector is vibrant and lively.  Nonprofit entrepreneurs form new entities in California every day, with great hopes for garnering support and tackling society’s pressing problems or serving constituencies with specialized needs. Nonetheless, despite good ideas and best intentions, sometimes things just don’t work out as planned.  When that happens, nonprofit founders are stuck… Continue Reading

IRS Commissioner Hints at Timing for New Political Regulations, Summarizes Thousands of Public Comments

Posted in AG, IRS, FTB, & Property Tax Proceedings, Private Foundations, Public Charities, Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

We looked at IRS Commissioner John Koskinen’s written statement to the Senate Finance Committee, with attached documents, submitted with his testimony on Tuesday, October 27, at http://www.finance.senate.gov/imo/media/doc/27OCT2015Koskinen.pdf. Here’s what’s newsworthy: First, from the Commissioner’s oral testimony and from his prepared statement, the IRS and Treasury have not been intimidated by Republican calls to discontinue the… Continue Reading

California Tax Lawyer Publishes “Proposed Guidance for Donor Advised Funds”

Posted in AG, IRS, FTB, & Property Tax Proceedings, Charitable Gift Planning, Nonprofit Structures, Relationships & Transactions, Public Charities

The California Tax Lawyer recently published Proposed Guidance for Donor Advised Funds, a policy paper co-authored by Adler & Colvin associate attorney Jorge Lopez and Courtney Nash of Farella, Braun + Martel.  The authors describe the history of DAFs, and explain the changes made with adoption of new rules as part of the Pension Protection… Continue Reading

IRS FY 2014 Data Book Reveals Dramatic Increase in Exempt Organization Approvals

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, Public Charities

Last week the Internal Revenue Service released its Fiscal Year 2014 Data Book, reporting on IRS operations, enforcement, revenue collection and related activities during the period of October 1, 2013, through September 30, 2014, (the IRS fiscal year).  The Data Book included a table on “Closures of Applications for Tax-Exempt Status, by Organization Type and… Continue Reading

Update — Expedited Handling for Determination Letters Still Available

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, Private Foundations, Public Charities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

For the past few weeks, there has been some confusion over Revenue Procedure 2014-4’s apparent elimination of an expedited option for exempt-organization determination letters as discussed previously, since the subsequent Revenue Procedure 2014-9 still included the explanation from previous years about the IRS’s standards for granting expedited treatment of exempt-organization determination letters. Earlier today, the… Continue Reading

Reinstatement Reloaded: Revenue Procedure 2014-11 Provides Help for Organizations Whose Tax-Exempt Status Was Automatically Revoked

Posted in AG, IRS, FTB, & Property Tax Proceedings, Private Foundations, Public Charities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

Since 2010, hundreds of thousands of tax-exempt organizations have lost their exempt status for failing to file the applicable return (Form 990, 990-PF, 990-EZ, or 990-N) three years in a row.  While exempt organizations of all types have been affected, many were smaller Section 501(c)(3) charities that never had an annual filing obligation prior to… Continue Reading

IRS Removes Expedited Handling for Determination Letters

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, Private Foundations, Public Charities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

*** THIS POST HAS BEEN SUPERSEDED BY NEW INFORMATION FROM THE IRS.  PLEASE REFER TO http://www.nonprofitlawmatters.com/2014/01/29/update-expedited-handling-for-determination-letters-still-available/. *** In Section 9.03(3) of the new Revenue Procedure 2014-4, the IRS has clarified that the option to request expedited handling is no longer available for determination letters.  The Revenue Procedure defines a “determination letter” as “a written statement… Continue Reading

Waiting on the IRS? The Shutdown Isn’t Helping

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, IRS, FTB & Attorney General Controversies

Like most parts of the federal government, the IRS is currently operating on a limited basis.  As of October 1, all live telephone lines have been closed, and any open or pending audits have been put on hold.  According to the IRS website, “people with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate… Continue Reading

IRS Recognizes Exemption for Nonprofit Community Newspaper

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, Public Charities, Revenue Generating Activities

In recent years, the dramatic expansion of digital news content, and the redirection of advertising dollars away from print, has caused an equally dramatic decline in the viability of print journalism.  At the same time, the IRS has demonstrated increased skepticism about whether journalism is charitable, given the historically commercial aspect of news publication. One… Continue Reading

User-Friendly or User-Fraught? California Secretary of State’s New Form Articles for Nonprofit Corporations

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status

If you deal with the California Secretary of State’s office with any frequency, you’re probably already familiar with the new requirements for nonprofit articles of incorporation that kicked in at the start of this year. While it’s simple to provide the new information requested (i.e., the corporation’s initial street and mailing addresses), there’s another new development… Continue Reading