The IRS announced today that the U.S. Department of the Treasury and the IRS will issue initial guidance regarding qualification requirements for tax-exemption as a social welfare organization under section 501(c)(4) of the Internal Revenue Code. This proposed guidance defines the term “candidate-related political activity,” and would amend current regulations by indicating that the promotion of social welfare does not include this type of activity. The proposed guidance also seeks initial comments on other aspects of the qualification requirements, including what proportion of a 501(c)(4) organization’s activities must promote social welfare.
On November 19, the IRS released its Exempt Organization Newsletter, Issue Number 2013-23. Topics include the following:
- IRS warns consumers of possible scams relating to relief of typhoon victims
- Seminars from the 2013 Forums available at IRS Nationwide Tax Forums Online
- 2014 PTIN renewal period underway for tax professionals (more…)
On November 15, the IRS released its Exempt Organization Newsletter, Issue Number 2013-22. Topics include the following:
- Looking for the 2012 Forms 990?
- Revenue procedure provides details about inflation-adjusted items for 2014
- 2014 PTIN renewal period underway for tax professionals
- Register for upcoming EO workshop
- IRS warns of pervasive telephone scam (more…)
The attached file shows all of the upcoming professional development classes being offered by the Nonprofit Management & Leadership Program at UMSL.
On October 25, the IRS released its Exempt Organization Newsletter, Issue Number 2013-21. Topics include the following:
- Use Form 8822-B to notify IRS of a change of address or responsible party
- Delayed start for PTIN renewal season
- Reminder: Don’t include Social Security numbers on publicly disclosed forms
- Work Opportunity Tax Credit expires soon
- Register for EO workshops
- IRS provides tax relief to victims of Colorado storms
On October 24, the IRS released Special Issue of it’s Exempt Organization Newsletter, Issue Number 2013-20.
Register for the workshop for small and medium-sized
501(c)(3) organizations Nov. 6-7 in Augusta, GA
IRS Exempt Organizations will offer its one-day workshop for small and medium-sized 501(c)(3) organizations at Augusta Technical College (Augusta, GA) on Nov. 6 and again on Nov. 7.
These workshops are presented by experienced IRS Exempt Organizations specialists and explain the nuts and bolts of what 501(c)(3) entities must do to keep their tax-exempt status and comply with tax obligations.
This introductory workshop is designed for organization administrators, volunteers who are responsible for tax compliance, the faculty and students of its academic hosts, and nonprofit practitioners.
Enrolled agents who attend the workshops receive six continuing education credits.
Once again, the Internal Revenue Service reminds us in PLR 201330011 that a distribution from an IRA to a residuary beneficiary will not result in recognition of IRD (also known as income in respect of a decedent) to the estate or trust, as only the residuary beneficiary will recognize the IRD.
Here the Decedent’s Estate was the beneficiary of the Decedent’s IRA. Under the provisions of the Decedent’s Will, his Estate poured over to his Revocable Trust on his death. His Revocable Trust provided that each of two Charities were to receive a percentage of the residue of his Trust, and further provided that the Trustee could satisfy this percentage gift in cash or in kind and also could allocate different assets to different residuary beneficiaries in satisfaction of their percentage interest in the trust residue.
Of course, the IRA constitutes income in respect of a decedent (IRD), and pursuant to IRC § 691 (a)(2) and Reg. § 1.691(a)-4(b)(2), the transfer of an item of IRD by an estate, such as by satisfying an obligation of the estate, will cause the estate to recognize the IRD, but if the estate transmits the item of IRD to a specific legatee of the item of IRD or to a residuary beneficiary (emphasis added), only the legatee or the residuary beneficiary will recognize the IRD.
When an IRA is assigned by an estate to a charity to satisfy a pecuniary bequest to that charity, the Service has taken the position in CCA 200644020 (issued November 3, 2006) that the estate must recognize the IRD, and that the estate is not entitled to a DNI (“distributable net income”) distribution deduction for that charitable distribution so that the IRD does not flow out to the charity. But when an estate is payable to 4 charities and the estate assigns the IRA to the charities, the assignment of the IRA to the four remainder beneficiaries does not cause the estate to recognize the IRD (PLR 200826028).
Here the result was the same as in PLR 200826028, even though the IRA was payable in the first instance to the estate and the estate was payable to the trust and the trust was then distributable only in part to charities. The fact that the executor and trustee joined together to allocate the IRAs to the charities and the non-IRD assets to the non-charitable beneficiaries did not cause the estate or the trust to have to recognize IRD, because the disproportionate distribution was authorized under the trust instrument and the distribution was to residuary beneficiaries.
Here the executor and trustee wanted to get the IRAs to the charities, because the distribution period for required minimum distribution purposes would have been limited to 5 years if the Decedent was under age 70 ½ or to the Decedent’s remaining life expectancy if the Decedent was over age 70 ½. In either event, any non-charitable beneficiary would not have been able to use his or her own life expectancy because the Decedent’s estate was the beneficiary of the IRA. Even if the trust was the beneficiary, having charities as countable beneficiaries would have eliminated the trust as a look-through trust, with the resulting short distribution period.
With 2014 just around the corner, numerous mandates under the Patient Protection and Affordable Care Act, as amended (“PPACA”) are about to become effective. Below is a checklist of upcoming PPACA mandates that employers must implement in 2014, as well as a list of existing enrollment and annual notice requirements that group health plan sponsors should consider during open enrollment. This is the first in a series of checklists regarding year-end benefits and compensation issues. Please watch for additional checklists on executive compensation and qualified retirement plan matters.
Click HERE to view the entire Alert.
Under the Patient Protection and Affordable Care Act (“ACA”), employers with group health plans must provide preventive health services without charging a co-pay, coinsurance payment, or a deductible. On August 1, 2011, the Department of Health & Human Services (HHS) adopted guidelines outlining the required preventive health care for women. That guidance requires coverage for all FDA-approved contraceptive services, including the “morning after” pill and the “week after” pill. When this HHS guidance was initially issued, many religious organizations objected to the contraceptive coverage requirement on the ground that this coverage was in direct conflict with their religious beliefs. HHS subsequently amended the regulations to exempt entirely organizations described in Internal Revenue Code sections 6033(a)(1) and 6033(a)(3)(A)(i) or (iii). These sections include organizations that may be classified for tax code purposes as churches, conventions or associations of churches, integrated auxiliaries or religious orders. For those objecting nonprofit religious organizations that do not qualify for the church employer exemption, HHS has recently finalized the rules for an “accommodation.”
For more information please view the Bryan Cave Alert