On November 23, the IRS released its Exempt Organization Newsletter, Issue Number 2012-19. Topics include the following:
- IRS gives extra time to small, automatically-revoked organizations hit by Hurricane Sandy
- Retirement plans can make loans, hardship distributions to Sandy victims
- IRS warns consumers of possible scams relating to Hurricane Sandy relief
- Employers hiring veterans by year’s end may get expanded tax credit
- Priority Guidance Plan released
- Register for upcoming workshops for small and medium-sized charities in Virginia and Arkansas
- EO Update editorial content is not copyrighted; all articles may be reused in your organization publications
1. IRS gives extra time to small, automatically-revoked organizations hit by Hurricane Sandy
The IRS is allowing small tax-exempt organizations affected by Hurricane Sandy until February 1, 2013, to apply for reinstatement of their exempt status and seek transitional relief. News Release IR-2012-96.
To be eligible for the postponed deadline, described in Notice 2012-71, the organization’s principal place of business must be located in the covered disaster area, or records necessary to meet the application deadline must be maintained in the covered disaster area. Organizations located outside the affected areas must still apply for transitional relief by December 31, 2012.
To check for future announcements, visit EO – Disaster Relief Resources for Charities and Contributors and Help for Victims of Hurricane Sandy.
2. Retirement plans can make loans, hardship distributions to Sandy victims
As part of the administration’s efforts to bring all available resources to bear to support state and local partners impacted by Hurricane Sandy, the Internal Revenue Service announced November 16 that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Sandy and members of their families. Read News Release IR-2012-93.
For more information, read Announcement 2012-44.
3. IRS warns consumers of possible scams relating to Hurricane Sandy relief
Following major disasters, it’s common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Such fraudulent schemes may involve contact by telephone, social media, email or in-person solicitations.
The IRS cautions both hurricane victims and people wishing to make disaster-related charitable donations to avoid scam artists by following these tips.
4. Employers hiring veterans by year’s end may get expanded tax credit
Employers planning to claim an expanded tax credit for hiring certain veterans should act soon, according to the IRS. Many businesses may qualify to receive thousands of dollars through the Work Opportunity Tax Credit, but only if the veteran begins work before the new year.
Read about the key facts of the WOTC as expanded by VOW to Hire Heroes Act of 2011
5. Priority Guidance Plan released
The Treasury Department’s Office of Tax Policy and IRS use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance. The Guidance Priority List focuses resources on guidance items that are most important to taxpayers and tax administration. Published guidance plays an
important role in increasing voluntary compliance by helping to clarify ambiguous areas of the tax law.
6. Register for upcoming workshops for small and medium-sized charities in Virginia and Arkansas
Take a moment to register for one of our upcoming workshops for small and medium-sized 501(c)(3) organizations. 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.
The full-day workshops are hosted by Virginia Tech and University of Arkansas at Little Rock in their respective states. The workshops are approved by the IRS for six continuing education credits for Enrolled Agents and Registered Tax Return Preparers.
This popular introductory workshop is especially designed for administrators or volunteers who are responsible for an organization’s tax compliance as well as tax professionals who work with the organizations.
Registration is now available for the following workshop dates and locations:
- December 4 – Little Rock, AR
- December 5 – Little Rock, AR
- December 5 – Arlington, VA
- January 10 – Portsmouth, VA
- January 11 – Richmond, VA
7. EO Update editorial content is not copyrighted; all articles may be reused in your organization publications
The EO Update contains valuable information for all charities and other non-profits. But did you know that since this publication is a work of the U.S. Government, it is not subject to U.S. copyright protection?
All of the articles contained in this publication are in the public domain and may be used by anyone, anywhere, anytime without permission, license or royalty payment.
IRS Exempt Organizations encourages readers to reuse these articles in their own organization publications and websites and thereby help disseminate the information beyond the scope of EO Update’s subscribers.