Aug
09
2016

EO Update: e-News for Charities & Nonprofits

Watch this free webinar about the IRS Tax Calendar for Businesses and Self-Employed

When: August 24, 2016; 2 p.m. (EDT)

How: Register for this event. You will use the same link to attend the event.

Learn about tracking federal tax due dates on your computer or mobile device 

  • The online Tax Calendar
  • The Desktop Calendar Tool (IRS CalendarConnector)
  • The Mobile Calendar Tool (IRS CalendarConnector)
  • How to Subscribe/Download into Your Calendar
  • How to Obtain Calendar Reminders (RSS Feeds)

Please note that we won’t be offering Continuing Education Credit for this event.

Resource:

IRS Tax Calendar for Businesses and Self-Employed

View due dates and actions for each month. You can see all events or filter them by monthly depositor, semiweekly depositor, excise, or general event types. Visit this page on your Smartphone or tablet, so you can view the Online Calendar on your mobile device.

Written by in: General
Jul
11
2016

EO Update: e-News for Charities & Nonprofits

  1. New requirement for organizations intending to operate under Section 501(c)(4): Submit Form 8976
    New legislation enacted at the end of 2015 added section 506 to the Internal Revenue Code. Section 506 requires an organization to notify the IRS of its intent to operate as a section 501(c)(4) organization. The IRS has developed a new form – Form 8976 – that organizations should use to provide this notification. The Form 8976 may only be submitted electronically. The Form 8976 – Electronic Registration System allows organizations to complete the notification process, keeps account information current and enables organizations to receive secure, digital communications from the IRS. A user fee of $50 must be submitted to Pay.gov to complete your organization’s notification. You do not need special software to submit a notification. Learn more.
  2. User fee decreased for Form 1023-EZ
    On July 1 the user fee to process the Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, was decreased from $400 to $275 (see Rev. Proc. 2016-32). You must submit the fee through www.pay.gov when you file a 1023-EZ application. You can pay the fee directly from your bank account or by credit/debit card.
  3. EP and EO participating in 2016 IRS Nationwide Tax Forums
    Employee Plans and Exempt Organizations will participate in the 2016 IRS Nationwide Tax Forums in five cities starting in July. The forums offer three days of seminars and workshops featuring speakers from both the IRS and tax practitioner organizations. In addition to getting the latest tax information, tax professionals can earn continuing education credits for their attendance.

    Read article.

Written by in: General
May
17
2016

EO Update: e-News for Charities & Nonprofits

Some Form 990-N Electronic Filing System (e-Postcard) users may see error messages

The Form 990-N online filing system moved from Urban Institute to IRS.gov in February. While the new system has been successful, a very small percentage of users see site errors while registering or submitting the form. The IRS offers this advice:

  • Review the steps listed on How to File Form 990-N. Pay particular attention to the “text character” restrictions.
  • The Form 990-N (e-Postcard) User Guide will explain each step in the filing process.
  • If site errors are unresolved, call TE/GE Customer Account Services at 877-829-5500. A representative will gather your Form 990-N information for filing on your organization’s behalf.
  • Organizations will not be penalized for filing late if it was caused by website issues. Organizations should continue efforts to file, even if they are late.

For more on filing Form 990-N, see the Form 990-N page on IRS.gov. 


Don’t forget to register for the free webcast about Accumulated Sick and Vacation Pay Deferred to 403(b) or 457(b) Plans

When: June 2, 2016; 2 p.m. (Eastern)

How: Register for this event. You will use the same link to attend the event.

Learn about:

  • When is accumulated sick and vacation leave pay subject to Federal Employment Taxes
  • When can taxes be deferred and for how long?
  • What is an elective contribution?
Written by in: General
May
11
2016

EO Update: e-News for Charities & Nonprofits

  1. EP and EO participating in 2016 IRS Nationwide Tax Forums – Register Now
  2. Register for IRS May 12 webinar: Reporting Compensation on Form 990 and Form 990-EZ
  3. Register for IRS May 19 webinar: Understanding the Universal Availability Rules in a 403(b) Retirement Plan

1.  EP and EO participating in 2016 IRS Nationwide Tax Forums – Register Now

Employee Plans and Exempt Organizations will participate in the 2016 IRS Nationwide Tax Forums in five cities starting in July. The forums offer three days of seminars and workshops featuring speakers from both the IRS and tax practitioner organizations. In addition to getting the latest tax information, tax professionals can earn continuing education credits for their attendance.

Read article.


2.  Register for IRS May 12 webinar: Reporting Compensation on Form 990 and Form 990-EZ

1 p.m., ET

Learn about:

  • How to report compensation
  • How to complete Form 990 and Form 990-EZ
  • What has to be reported
  • Other compensation
  • Exceptions
  • Highest compensated employees

Register for this webinar.


3.  Register for IRS May 19 webinar: Understanding the Universal Availability Rules in a 403(b) Retirement Plan

2 p.m. ET

Learn about:

  • Basic universal availability rules
  • Treatment of adjunct faculty at universities
  • Treatment of part-time, seasonal, and temporary employees
  • The 20 hours per week and the 1,000 hours rules
  • Controlled group situations and concerns
  • Mayo ruling on medical residents and its impact
  • The required notice to employees each year
  • Ways to find, fix, and avoid universal availability errors

Register for this event. You’ll use the same link to attend the event.

Written by in: General
May
09
2016

EO Update: e-News for Charities & Nonprofits

  1. IRS Announcement 2016-17: Limited Penalty Relief for Filers of Form 1098-T, Tuition Statement
  2. Register for IRS May 12 webinar: Reporting Compensation on Form 990 and Form 990-EZ
  3. Register for IRS May 19 webinar: Understanding the Universal Availability Rules in a 403(b) Retirement Plan (more…)
Written by in: General
Apr
28
2016

IRS EO Update

Register for IRS May 12 webinar: Reporting compensation on Form 990 or Form 990-EZ

Don’t miss this event!

May 12, 1-2 p.m., ET

Learn about:

  • How to report compensation
  • How to complete Form 990 and Form 990-EZ
  • What has to be reported
  • Other compensation
  • Exceptions
  • Highest compensated employees

Register for this webinar.


Read IRS TE/GE “Issue Snapshots”

The IRS Tax Exempt and Government Entities (TE/GE) Knowledge Management team periodically issues research summaries called “Issue Snapshots” on tax-related issues for practitioners. They are posted on IRS.gov’s electronic reading room page under “Training and Reference Materials.” Bookmark and check the page often for helpful new materials.

Recent articles include:


IRS seeks volunteers for Taxpayer Advocacy Panel through May 16

The IRS seeks civic-minded volunteers to serve on the Taxpayer Advocacy Panel, a federal advisory committee that listens to taxpayers, identifies major taxpayer concerns, and makes recommendations for improving IRS service and customer satisfaction.

Written by in: General
Mar
08
2016

Treasury Green Book Proposals — Private Foundations

The Department of the Treasury has released the Treasury Green Book  for Fiscal Year 2017, which provides explanations of the President’s budget proposals.  One such proposal (remember…these are just proposals, not actual changes in the law) that may affect your estate planning, if passed, is found on page 240 of the Green Book and is re-printed here for your convenience:

REFORM EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE FOUNDATIONS

Current Law

Private foundations that are exempt from Federal income tax generally are subject to a two percent excise tax on their net investment income. The excise tax rate is reduced to one percent in any year in which the foundation’s distributions for charitable purposes exceed the average level of the foundation’s charitable distributions over the five preceding taxable years (with certain adjustments). Private foundations that are not exempt from Federal income tax, including certain charitable trusts, must pay an excise tax equal to the excess (if any) of the sum of the excise tax on net investment income and the amount of the unrelated business income tax that would have been imposed if the foundation were tax exempt, over the income tax imposed on the foundation. Under current law, private nonoperating foundations generally are required to make annual distributions for charitable purposes equal to five percent of the fair market value of the foundation’s noncharitable use assets (with certain adjustments). The amount that a foundation is required to distribute annually for charitable purposes is reduced by the amount of the excise tax paid by the foundation.

Reasons for Change

The current “two-tier” structure of the excise tax on private foundation net investment income may discourage foundations from significantly increasing their charitable distributions in any particular year. An increase in a private foundation’s distributions in one year will increase the foundation’s five-year average percentage payout, making it more difficult for the foundation to qualify for the reduced one-percent excise tax rate in subsequent years. Because amounts paid by foundations in excise tax generally reduce the funds available for distribution to charitable beneficiaries, eliminating the “two-tier” structure of this excise tax would ensure that a private foundation’s grantees do not suffer adverse consequences if the foundation increases its grantmaking in a particular year to respond to charitable needs (for example, disaster relief). Such a change would also simplify both the calculation of the excise tax and charitable distribution planning for private foundations.

Proposal

The proposal would replace the two rates of tax on private foundations that are exempt from Federal income tax with a single tax rate of 1.35 percent. The tax on private foundations not exempt from Federal income tax would be equal to the excess (if any) of the sum of the 1.35- percent excise tax on net investment income and the amount of the unrelated business income tax that would have been imposed if the foundation were tax exempt, over the income tax imposed on the foundation. The special reduced excise tax rate available to tax-exempt private foundations that maintain their historic levels of charitable distributions would be repealed. The proposal would be effective for taxable years beginning after the date of enactment

Written by in: General
Mar
03
2016

IRS Alerts Payroll and HR Professionals to Phishing Scheme Involving W-2s

WASHINGTON – The Internal Revenue Service today issued an alert to payroll and human resources professionals to beware of an emerging phishing email scheme that purports to be from company executives and requests personal information on employees.

The IRS has learned this scheme – part of the surge in phishing emails seen this year – already has claimed several victims as payroll and human resources offices mistakenly email payroll data including Forms W-2 that contain Social Security numbers and other personally identifiable information to cybercriminals posing as company executives.

“This is a new twist on an old scheme using the cover of the tax season and W-2 filings to try tricking people into sharing personal data. Now the criminals are focusing their schemes on company payroll departments,” said IRS Commissioner John Koskinen. “If your CEO appears to be emailing you for a list of company employees, check it out before you respond. Everyone has a responsibility to remain diligent about confirming the identity of people requesting personal information about employees.”

IRS Criminal Investigation already is reviewing several cases in which people have been tricked into sharing SSNs with what turned out to be cybercriminals. Criminals using personal information stolen elsewhere seek to monetize data, including by filing fraudulent tax returns for refunds.

This phishing variation is known as a “spoofing” email. It will contain, for example, the actual name of the company chief executive officer. In this variation, the “CEO” sends an email to a company payroll office employee and requests a list of employees and information including SSNs.

The following are some of the details contained in the e-mails:

  • Kindly send me the individual 2015 W-2 (PDF) and earnings summary of all W-2 of our company staff for a quick review
  • Can you send me the updated list of employees with full details (Name, Social Security Number, Date of Birth, Home Address, Salary) as at 2/2/2016.
  • I want you to send me the list of W-2 copy of employees wage and tax statement for 2015, I need them in PDF file type, you can send it as an attachment. Kindly prepare the lists and email them to me asap.

The IRS recently renewed a wider consumer alert for e-mail schemes after seeing an approximate 400 percent surge in phishing and malware incidents so far this tax season and other reports of scams targeting others in a wider tax community.

The emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. The phishing schemes can ask taxpayers about a wide range of topics. E-mails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.

The IRS, state tax agencies and tax industry are engaged in a public awareness campaign – Taxes. Security. Together. – to encourage everyone to do more to protect personal, financial and tax data. See IRS.gov/taxessecuritytogether or Publication 4524 for additional steps you can take to protect yourself.

Written by in: General
Feb
11
2016

Health Coverage Providers: Deadlines for Health Coverage Providers to Report Minimum Essential Coverage are Approaching

Who Must Report?

If you are a health insurance issuer, self-insured employer, or other entity that providedminimum essential coverage (MEC) during calendar year 2015, including a state government providing Medicaid or Children’s Health Insurance Program (CHIP) coverage, you are subject to Affordable Care Act information reporting requirements.

What Must You Report?

You must report certain information to the IRS and to covered individuals about the coverage that you provided.

Which Forms Must You File?

Health insurance issuers, employers that are not applicable large employers and offer self-insured coverage, Medicaid and CHIP providers, and other MEC providers file Form 1094-B and Form 1095-B with the IRS and provide a copy of Form 1095-B to the covered individuals.

  • Form 1095-BHealth Coverage: to report information to the IRS and to covered individuals about MEC
  • Form 1094-BTransmittal of Health Coverage Information Returns: to transmit your Forms 1095-B to the IRS and provide summary information about the individuals who are covered by MEC

Applicable large employers that sponsor self-insured group health plans should file Form 1094-C and Form 1095-C and report coverage information in Part III. A copy of the Form 1095-C should be provided to the employee.

  • Form 1095-CEmployer-Provided Health Insurance Offer and Coverage:to report information about coverage offered to full-time employees and MEC information about covered individuals
  • Form 1094-CTransmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns: to transmit your Forms 1095-C to the IRS and provide summary information about the employer

When Are the Due Dates?

The due dates for the 2015 information reporting requirements have been extended as follows:

  • Forms 1095-B and 1095-C: provided to individuals by Mar. 31, 2016
  • Forms 1094-B and 1095-B and 1094-C and 1095-C: filed with  the IRS by May 31, 2016, if filing on paper, or June 30, 2016, if filing electronically

More Information

For more information, see questions and answers about Information Reporting by Health Coverage Providers on IRS.gov/aca and the 2015 Instructions for Forms 1094-C and 1095-C.

Written by in: General
Feb
03
2016

IRS Exempt Organization Newsletter 2016-1

On February 2, the IRS released its Exempt Organization Newsletter, Issue Number 2016-1.

  1. Register for IRS webinar: Starting and Operating Charities for Disaster Relief
  2. Form 990-N submission website will change Feb. 29
  3. IRS provides tax relief to Missouri storm victims; tax deadline extended to May 16
  4. Read IRS Tax Tips

  1.  Register for IRS webinar: Starting and Operating Charities for Disaster Relief


Register for this one-hour webinar, scheduled Thursday, Feb. 25 at 2 p.m. (Eastern).

Learn about:

  • The requirements for starting a tax-exempt charity under federal law.
  • The ways for new and existing organizations to provide disaster relief without jeopardizing their tax-exempt status.
  • Operational requirements, fundraising and working with volunteers.

Back to Top


  2.  Form 990-N submission website will change Feb. 29


Beginning February 29, Form 990-N electronic submissions will be accepted through IRS.gov instead of Urban Institute’s website.

Back to Top


  3.  IRS provides tax relief to Missouri storm victims; tax deadline extended to May 16


Missouri storm victims will have until May 16 to file their returns and pay any taxes due, the IRS announced recently. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.

Read news release.

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  4.  Read IRS Tax Tips


These tips (including the most recent, Ten Great Ways to Use IRS.gov) provide important tax information. Please share them with your employees and with members of the communities you serve.

Written by in: General

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