Nonprofit Law Matters

Tag Archives: substantiation

RERI Holdings I, LLC and the Importance of Form 8283

Posted in Charitable Gift Planning, IRS, IRS, FTB & Attorney General Controversies

A recent Tax Court case, RERI Holdings I, LLC et al. v. Commissioner, 149 T.C. 1 (Jul. 3, 2017), should remind charities and their donors of the importance of full compliance with the substantiation rules and the potential costs of aggressive tax planning. Facts of RERI Holdings To over-simplify the complex facts in RERI Holdings:… Continue Reading

Automatic Excess Benefit Transactions

Posted in IRS, FTB & Attorney General Controversies, Nonprofit Governance & Ethics, Public Charities

Did you know that if a 501(c)(3) public charity or a 501(c)(4) social welfare organization fails to properly substantiate payments that it makes to its insiders as either compensation or reimbursement, those payments may be subject to significant excise taxes?  Under Internal Revenue Code Section 4958, the IRS may impose intermediate sanctions on any “excess… Continue Reading