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IRS Exempt Organization Newsletter 2014-13

July 24, 2014


On July 23, the IRS released its Exempt Organization Newsletter, Issue Number 2014-13.

  • YouTube video: Learn about the new Form 1023-EZ
  • July 24 webinar: How to apply to be tax-exempt (including new Form 1023-EZ)
  • Phone forum: 403(b) plans update and latest developments – July 28, 2014
  • Register for EO workshops
  • IRS Exempt Organization Newsletter : Special Issue

    July 18, 2014


    On July 18, the IRS released a special issue of it’s Exempt Organization Newsletter.

    Register for the July 24 webinar:  How to apply to be tax-exempt (including new Form 1023-EZ)

    2 p.m. ET Register for this presentation Learn about:

    • General requirements for applying for 501(c)(3) tax-exempt status
    • Application Forms 1023, i1023, 1023-EZ, and 1024
    • Requirements for filing each application
    • Filing tips for applying for tax-exempt status
    • Exempt Organizations resources

    IRS Exempt Organization Newsletter 2014-12

    July 17, 2014


    On July 17, the IRS released its Exempt Organization Newsletter, Issue Number 2014-12.

  • Register for the July 24 webinar: How to apply to be tax-exempt (including new Form 1023-EZ)
  • Office of Professional Responsibility issues revisions to Circular 230
  • New Voluntary Education Program for 2015 for registered tax return preparers
  • Review posted presentation: Veterans Organizations – Help from the IRS on key rules
  • Register for EO workshops
  • Hobby Lobby Decision Strengthens Religious Exemption Claims

    July 9, 2014


    The U.S. Supreme Court has ruled that the government cannot require Hobby Lobby, in violation of its religious beliefs, to provide abortion-inducing contraceptives in its health plan. In reaching this conclusion, the Court adopted nearly all of the positions for which we argued in a “friend of the court” (amicus) brief we filed with the Court to protect the religious liberty interests of nonprofit religious organizations.

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    HIPAA Audits Are Coming (Again) – Are You Ready?

    July 3, 2014


    The Office of Civil Rights (“OCR”) of the U.S. Department of Health and Human Services (“HHS”) is required to conduct periodic audits of compliance with the Privacy, Security and Breach Notification Rules under the Health Insurance Portability and Accountability Act (“HIPAA”).

    In Phase I, which closed on December 31, 2012, OCR conducted 115 performance audits.  Now, OCR is preparing for Phase II.

    To have a broad range of covered entities audited in Phase II, OCR is sending electronic pre-audit surveys to 550-800 eligible entities this summer. The pre-audit surveys are designed to ascertain the size, location, services and best contact information of the covered entities.

    OCR is expected to select 350 covered entities for audit (232 health care providers, 109 health plans and 9 health care clearinghouses).  Audit notifications and request letters will be mailed to selected covered entities in the fall of 2015.

    The Phase II audits will

    IRS Finalizes New Form 1023-EZ Streamlined Application

    July 2, 2014


    The Internal Revenue Service has issued Revenue Procedure 2014-40 detailing the procedures for use of the new Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.  The relevant proposed regulations have also been finalized.  The new online-only Form 1023-EZ simplifies the exemption application process for eligible organizations.  An organization with a pending Form 1023 application may in some situations submit a superseding Form 1023-EZ.

    Reductions and Differences

    The IRS announced the new form and the guidance in IR-2014-77, trumpeting the 3-page length of the Form 1023-EZ, far slimmer than the 26-page standard Form 1023.

    Unlike the longer version, Form 1023-EZ does not require applicants to submit of the articles of incorporation or association, corporate bylaws, trust agreement, or conflict of interest policy.  Instead, it asks that the applying organization attest to having the necessary organizing documents and that they

    IRS Exempt Organization Newsletter 2014-11

    July 1, 2014


    On July 1, the IRS released its Exempt Organization Newsletter, Issue Number 2014-11.

    New 1023-EZ Form Makes Applying to be Tax-Exempt Easier; Most Charities Qualify

    The Internal Revenue Service today introduced a new, shorter application form, Form 1023-EZ, to help small charities apply for 501(c)(3) tax-exempt status more easily. Most organizations with annual gross receipts of $50,000 or less and assets of $250,000 or less are eligible. See news release for details.

    The change will allow the IRS to speed the approval process for smaller groups and free up resources to review applications from larger, more complex organizations while reducing the application backlog.

    The new 1023-EZ form must be filed on, accompanied by a $400 user fee. The instructions include an eligibility checklist that organizations must complete before filing the form.

    ACA Employer Mandate / Reporting and Tracking Hours

    June 30, 2014


    As if compliance with the ACA’s market reforms and complex plan design rules (including an assessment of affordability and minimum value), hasn’t caused enough headaches – now you have to prepare to track and report detailed information about your compliant offers of coverage?  Unfortunately, the answer is “yes”.  Time spent now tracking information and making decisions about how an employer plans to report in early 2016 (for the 2015 plan year) will make completion of those yet-to-be-released forms more feasible in the future.

    Shakespeare-TiredTo track or not to track, that is the question….

    ACA reporting may not be required until the first quarter of 2016, but employers need to get prepared now to comply with those requirements due to the detailed information required.  While tracking hours may be inevitable for certain employers

    The Upcoming Hobby Lobby Decision’s Impact on Religious Exemptions

    June 26, 2014


    Within the next several days, the U.S. Supreme Court will issue its decision regarding whether the government can require Hobby Lobby to provide abortion-inducing contraceptives in its health plan, notwithstanding Hobby Lobby’s religious objection to abortion.  In determining whether the law can be applied to Hobby Lobby, the Supreme Court must decide whether religious exercise rights should be applied broadly or narrowly.

    The Supreme Court’s decision will likely have important implications for nonprofit religious organizations.  Most directly, the decision may determine whether such organizations can claim a religious exemption from the contraceptive coverage mandate. More generally, the decision may determine the scope of other important religious exemptions.

    Many religious organizations have a vital interest in preserving their rights to:

  • employ fellow believers as they deem necessary;
  • carry out their ministry activities in accordance with their beliefs (e.g., with respect to marriage and sexual conduct); and
  • qualify for religious tax exemptions.
  • IRS Exempt Organization Newsletter 2014-10

    June 23, 2014


    On May 9, the IRS released its Exempt Organization Newsletter, Issue Number 2014-10. Topics include the following:

  • ACT submits UBIT recommendations
  • IRS adopts “Taxpayer Bill of Rights”
  • Register for the June 26 webcast: Unrelated Business Income (UBI) and Exempt Organizations
  • IRS recorded phone forum presentations posted
  • New FBAR Form 114 due June 30
  •   1.  ACT submits UBIT recommendations

    The advisory committee suggests ways to improve reporting of unrelated business income. Read recommendations.

      2.  IRS adopts “Taxpayer Bill of Rights”

    The IRS recently announced the adoption of a Taxpayer Bill of Rights that will become a cornerstone document to provide the nation’s taxpayers with a better understanding of their rights. Read news release.

      3.  Register for the June 26 webcast: Unrelated Business Income (UBI) and Exempt Organizations

    2 p.m. ETRegister for this presentation

    Learn about:

    • How to be organized for an exempt purpose
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