Aug
15
2012

IRS Exempt Organization Newsletter 2012-13

On August 13, the IRS released its Exempt Organization Newsletter, Issue Number 2012-13. Topics include the following:

  • View webinar on authorizations of disclosure of tax information to third parties Aug. 29
  • Sign up for the IRS Nationwide Tax Forum in Chicago
  • Notice 2012-52: Charitable contributions to domestic disregarded entities
  • PTIN system improved
  • RPO and OPR delegation orders available
  • Register for upcoming SMS workshops
  • New pub for conduit issuers of tax-exempt bonds
  • IRS can help when starting a small business


  1.  View webinar on authorizations of disclosure of tax information to third parties Aug. 29


This webinar includes an overview of third party authorizations: Form 2848, Form 8821 and Checkbox Authorization; preparing and submitting third party authorizations; and trouble shooting third party authorization issues.

Certificates of completion are being offered for this webinar, which occurs Wednesday, Aug. 29, 11 a.m. (Pacific); Noon (Mountain); 1 p.m. (Central); and 2 p.m. (Eastern).

Also, don’t miss the rebroadcast of Circular 230 Overview, on Wednesday, Aug. 15, 11 a.m. (Pacific); Noon (Mountain); 1 p.m. (Central); and 2 p.m. (Eastern).  See details on registration page


  2.  Sign up for the IRS Nationwide Tax Forum in Chicago


Join tax professionals from across the country Aug. 21-23 at the Hyatt Regency McCormick Place in Chicago. Three days of the latest tax law information, networking opportunities and exhibits of the newest products and services to improve your business are all right around the corner.

Late registration begins Aug. 14 at 6 p.m. EDT. Register now and earn up to 18 CPE credits.

For more information or to register, please visit the IRS Nationwide Tax Forum website.


  3.  Notice 2012-52: Charitable contributions to domestic disregarded entities


This notice provides guidance on the deductibility of contributions to domestic single-member limited liability companies that are wholly owned and controlled by organizations described in § 170(c)(2) of the Internal Revenue Code (U.S. charities) and for federal tax purposes are disregarded as entities separate from their owners under § 301.7701-2(c)(2)(i) of the Procedure and Administration Regulations.


  4.  PTIN system improved


The Preparer Tax Identification Number (PTIN) system now sports new features.

Highlights include:

  • New look and feel, including enhanced log-in page
  • Consolidation of main menu and PTIN menu
  • Pop-up help messages
  • Better instructions for required format in numerical fields (including an immediate error message for wrong format)
  • Redesigned address entry screen (including copy from feature and a zip code lookup feature)
  • Improved ability to review/edit a summary of all info before submitting
  • Streamlined data entry for supervisor PTIN and professional credential data

More enhancements are planned when the PTIN renewal season begins in mid-October.


  5.  RPO and OPR delegation orders available#


The delegation orders for the Return Preparer Office and the Office of Professional Responsibility are now available.


  6.  Register for upcoming SMS workshops


Take a moment to register for our upcoming workshops for small and medium-sized (SMS) 501(c)(3) organizations in many states.

Each one-day workshop, presented by experienced Exempt Organizations specialists, will explain what 501(c)(3) organizations must do to keep their tax-exempt status and comply with tax obligations. This popular introductory workshop is designed especially for administrators or volunteers who are responsible for an organization’s tax compliance as well as those interested in careers in the nonprofit sector.

Registration is now available for the following workshop locations:

  • Waco, TX (Aug. 28) – hosted by McLennan Community College Continuing Education
  • Louisville, KY (Aug. 28 & 29) – hosted by Kentucky Nonprofit Network at the University of Kentucky
  • Temple, TX (Aug. 29) – hosted by Temple College Division of Business and Community Education
  • Austin, TX (Aug. 30) – hosted by the Center for Community-Based and Nonprofit Organizations at Austin Community College
  • Pittsburgh, PA (Sept. 11) – hosted by Bayer Center for Nonprofit Management at Robert Morris University
  • Seattle, WA (Sept. 12) – hosted by the Nancy Bell Evans Center on Nonprofits & Philanthropy at the University of Washington
  • Philadelphia, PA (Sept. 13) – hosted by Nonprofit Center at LaSalle University
  • Spokane, WA (Sept. 14) – hosted by the Nancy Bell Evans Center on Nonprofits & Philanthropy at the University of Washington
  • Chicago, IL (Sept. 18) – hosted by University of Illinois
  • DeKalb, IL (Sept. 20) – hosted by Northern Illinois University – Center for NGO Leadership and Development
  • Rocky Mount, NC (Sept. 25-26) – hosted by East Carolina University and North Carolina State University
  • Portland, OR (Sept. 25) – hosted by the Center for Public/Institute for Nonprofit Management at Portland State University
  • Silver City, NM (Sept. 26) – hosted by Western New Mexico University
  • Boise, ID (Sept. 27) – hosted by Boise State University, College of Business Economics
  • Albuquerque, NM (Sept. 28-29) – hosted by the University of New Mexico: UNM School of Law Clinical Law Programs, UNM Division of Continuing Education, and the UNM School of Public Administration

  7.  New pub for conduit issues of tax-exempt bonds


The IRS released the new Publication 5005, Your Responsibilities as a Conduit Issuer of Tax-Exempt Bonds. This publication provides an overview for state and local governments of the responsibilities of the conduit issuer with respect to tax compliance in municipal financing arrangements commonly known as conduit financings.

This publication is based on the recommendations of the TE/GE Advisory Committee, also known as the ACT.

For more information about the above item or if you have other tax-exempt bonds questions, go to Tax Exempt Bond Community on IRS.gov.


  8.  IRS can help when starting a  small business


July 30, 2012 – IRS Summertime Tax Tip 2012-11

If you are opening a new business this summer, the IRS has some basic federal tax information to help you get started. (Much of this advice will be helpful to those starting a new nonprofit organizations as well).

Here are some things to consider when starting a business:

  • Type of Business: One of the first decisions you need to make is what type of business you are going to establish. The most common types of businesses are sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company. The type of business you establish determines which tax forms you will need to file.
  • Types of Taxes:The type of business you operate also determines what types of taxes you will pay and how you will pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
  • Employer Identification Number:A business typically needs to get an Employer Identification Number to use as an identifier for tax purposes. Check IRS.gov to find out whether you will need this number, and, if so, you can apply for an EIN online.
  • Recordkeeping:Good records will help you keep track of deductible expenses, prepare your tax returns and support items that you report on your tax returns. Good records will also help you monitor the progress of your business and prepare your financial statements. You may choose any recordkeeping system that clearly shows your income and expenses.
  • Tax Year:Every business taxpayer must figure taxable income on an annual basis called a tax year. Your tax year can be either a calendar year or a fiscal year.
  • Accounting Method: Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.

Visit the IRS.gov website and click on the ‘Businesses’ tab for more information and resources, including a special section on starting a business. Publication 583, Starting a Business and Keeping Records, can also help new business owners understand their federal tax responsibilities. The publication is also available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Links: Starting a Business
Publication 583, Starting a Business and Keeping Records (PDF) Business Taxes    Publication 334, Tax Guide for Small Business (PDF) Publication 535, Business Expenses (PDF) Publication 538, Accounting Periods and Methods (PDF) YouTube Video: Employer Identification Number – English#

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