Tuesday, October 21, 2008

Your Nonprofit Library Third Shelf – Getting the U.S. IRS to Recognize Your Nonprofit as Tax Exempt

Here are the links to all the IRS forms and new tutorials the IRS has developed to help groups be recognized as tax exempt organizations. IRS recognition of a nonprofit as tax exempt allows donors to potentially receive a tax break for giving to the organization. It may also affect your need to pay sales tax in your state. Make a copy of all the publications and forms or mark them for easy access. Your local IRS office can secure copies for you without cost.

NOTE: Many IRS Forms and Publications are related to taxpayers; they change every year. The Forms and Publications related to taxpaying donors are also subject to annual changes. The IRS also periodically amends other Forms and Publications related to your tax exemption. Generally, however, the IRS does not change the number of the Form or Publication so you can search for an updated version from most of the links below.

Applying For Tax Exemption

IRS List of Forms by Numbers, includes all for tax exemption and all other IRS forms - http://www.irs.gov/formspubs/lists/0,,id=97817,00.html

The starting place for the IRS and Charitable Organizations - http://www.irs.gov/charities/charitable/index.html

Application Process - http://www.irs.gov/charities/article/0,,id=96210,00.html

The following are the current links to the IRS mini-course on tax exempt organizations - http://www.stayexempt.org/home_mini_courses.html

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ABC's for Exempt Organizations

Navigating IRS Resources for Tax-Exempt Organizations
Posted on June 30th, 2008 Download Presentation
Ever wonder what the IRS Web site contains for exempt organizations? This mini-course will show you what’s available and how to find it! (approximately 7 minutes)

Political Campaigns and Charities: The Ban on Political Campaign Intervention
Posted on June 30th, 2008 Download Presentation
A 501(c)(3) organization jeopardizes its exempt status when it intervenes in a political campaign. This mini-course provides examples of prohibited activities and explains steps an organization should take to avoid an inadvertent violation. (approximately 16 minutes)

The Wonderful World of Foundation Classification (Part I)
September 09, 2008 Download Presentation
All 501(c)(3) organizations also have something called a “foundation classification.” This mini-course covers the basics of two of the more common types. (approximately 18 minutes)

Can I Deduct My Charitable Contributions?
September 09, 2008 Download Presentation
Is this a question you hear from your donors? This brief overview of deductibility can help your exempt organization understand the rules of what’s deductible and what’s not. (approximately 20 minutes)

Applying for Tax-Exempt Status
September 09, 2008 Download Presentation
If your organization is brand-new, and you’re thinking about applying for tax-exempt status, take a look at this mini-course first. You’ll learn about IRS resources that will make the process easier and quicker. (approximately 19 minutes)

Preparing to File the New Form 990
October 17, 2008 Download Presentation
For the 2008 filing year, exempt organizations will be working with a completely redesigned Form 990 or 990EZ – the first major overhaul of these documents in 30 years. This course provides an overview of the changes IRS has made, and the next four courses provide a line-by-line walk through of the different sections of the course and provide guidance and tips to completing an error-free return. (approximately 14 minutes)

The Redesigned Form 990 –Part I
October 17, 2008 Download Presentation
In this mini-course, you’ll receive general instructions for completing the form and walk through the heading and financials sections. (approximately 37 minutes)

The Redesigned Form 990 –Part II
October 17, 2008 Download Presentation
This mini-course walks you through the Accomplishments, Compliance, and Compensation sections of the new 2008 Form 990. (approximately 25 minutes)

The Redesigned Form 990 –Part III
October 17, 2008 Download Presentation
In this mini-course, get a walk through of the Governance, Management, Disclosure, Summary sections, the Checklist of Required Schedules and Schedule A. (approximately 25 minutes)

The Redesigned Form 990 –Part IV
October 17, 2008 Download Presentation
This mini-course takes you line by line through Schedules C, F, G, I, M and R. (approximately 37 minutes)

Types of Tax-Exempt Organizations - http://www.irs.gov/charities/content/0,,id=96931,00.html

Applying for Tax Exemption - The IRS issued a revenue procedure (Rev. Proc. 2007-52) that describes the procedures by which an organization applies for tax-exempt status, and by which the IRS determines whether to grant tax-exempt status. http://www.irs.gov/irb/2007-30_IRB/ar16.html#d0e17097

Tax Kit - many of the forms here about tax exemption may be filled out and completed online - http://www.irs.gov/charities/article/0,,id=96774,00.html

IRS Publication 4220 – Applying for 501 (c) (3) Tax-Exempt Status (20 pages) - http://www.irs.gov/pub/irs-pdf/p4220.pdf

IRS Form 1023 for organizations filing under section 501 (c) (3) (28 pages) –

Form 1023 Instructions (38 pages) - http://www.irs.gov/pub/irs-pdf/i1023.pdf

Form 1023 FAQs - http://www.irs.gov/charities/article/0,,id=130101,00.html

Form 1024 for organizations filing under sections 501(c)(2), (4), (5), (6), (7), (8), (9), (10), (12), (13), (15), (17), (19), and (25) (25 pages) - http://www.irs.gov/pub/irs-pdf/k1024.pdf

IRS Publication 557, Tax Exempt Status for Your Organization (72 pages) – Revised June 2008 http://www.irs.gov/pub/irs-pdf/p557.pdf

Form 8718 - shows Federal fees for filing Form 1023 ($750 or $900) - http://www.irs.gov/pub/irs-pdf/f8718.pdf

IRS Publication 4221, Compliance Guide for 501(c) (3) Tax Exempt Organizations and Record Retention (36 pages) - http://www.irs.gov/pub/irs-pdf/p4221pc.pdf

Pension Protection Act of 2006 Revises EO Tax Rules - http://www.irs.gov/charities/article/0,,id=161145,00.html

Life Cycle of a Public Charity - http://www.irs.gov/charities/charitable/article/0,,id=122670,00.html

Publication 1828 - Exempt Organizations Tax Guide for Churches and Religious Organizations; also comments about lobbying and political activity (32 pages) - http://www.irs.gov/pub/irs-pdf/p1828.pdf and http://www.irs.gov/newsroom/article/0,,id=122887,00.html

Frequently Asked Questions with Answers - http://www.irs.gov/faqs/index.html and http://www.irs.gov/charities/content/0,,id=96986,00.html

IRS Releases Report on Tax-Exempt Charitable Financing Compliance Project - http://www.irs.gov/taxexemptbond/article/0,,id=186653,00.html

Publication 4245 – Common Reasons for Rejection and Power of Attorney and Declaration of Representative Pamphlet -

Form 2848, Power of Attorney and Declaration of Representative Form - http://www.irs.gov/pub/irs-pdf/f2848.pdf

Contributions - http://www.irs.gov/charities/article/0,,id=96102,00.html

Charitable Contributions Substantiation and Disclosure Requirements (16 Pages) - http://www.irs.gov/pub/irs-pdf/p1771.pdf

Publication 526, Charitable Contributions for Use Preparing 2008 Tax Returns -

Public Disclosure - http://www.irs.gov/charities/charitable/article/0,,id=182722,00.html

Form 8734 Support Schedule for Advance Ruling Period – This form is going through changes because the IRS is no longer issuing advanced rulings. See link to blogs under Other Resources, below.
http://www.irs.gov/charities/charitable/article/0,,id=185605,00.html and http://www.irs.gov/pub/irs-pdf/f8734.pdf

Annual Electronic Filing Requirement for Small Exempt Organizations — Form 990-N (e-Postcard) - http://www.irs.gov/charities/article/0,,id=169250,00.html

IRS Completed 2008 Form 990 Instructions and Background Documents - http://www.irs.gov/charities/article/0,,id=181089,00.html

2008 Form 990-EZ Instructions Released -

e-file for Charities and Non-Profits - http://www.irs.gov/efile/article/0,,id=108211,00.html

Political Activities Compliance Initiative (2008 Election) - http://www.irs.gov/charities/charitable/article/0,,id=181565,00.html

EO Update is a periodic newsletter with information for tax-exempt organizations and tax practitioners - attorneys, accountants, and others - who represent them, from Exempt Organizations (Tax-Exempt and Government Entities) at the IRS, subscribe

The IRS has the Basic Tools for Tax Professionals, those CPAs who may audit your books and work on your 990.

Remarks of Steven T. Miller, IRS Commissioner, Tax Exempt and Government Entities Before the Georgetown Law Center Seminar on Representing and Managing Tax-Exempt Organizations. His remarks centered on two topics: one is governance, and the other efficiency and effectiveness. How will the IRS address them? Read the speech carefully.

Other Resources:

IRS Makes Filing For Nonprofit Tax Exemption Easier, Sort Of

IRS Rules on the Phase-in for Nonprofit Organizations to File the New 990 Series Forms

Effect of IRS Ruling Eliminating Advanced Rulings On Form 1023

You Can Pay Me Now Or You Can Pay Me Later

Reasons Not to Incorporate a Nonprofit Organization

The Nonprofit Business Plan - Program Precedes Money. Planning Precedes Program.

Developing a Nonprofit Tax Exempt Organization - Outline of First Steps

Starting a Nonprofit by Carter McNamara - http://www.managementhelp.org/strt_org/strt_np/strt_np.htm

Idealist.com’s article and links, Where to start when creating a nonprofit - http://www.idealist.org/if/idealist/en/FAQ/QuestionViewer/default?section=02&item=01

Nolo Press Nonprofit Basicshttp://www.nolo.com/article.cfm/objectID/91D3BDDE-D91E-4667-951A05E6F14CB1F1/111/262/ART/

Nonprofit Leadership Center of Tampa Bay http://nonprofittampabay.org/ns_nonprofitstartup.htm

OMBWatch - http://www.ombwatch.org/article/archive/518

1 comment:

Carol Topp, CPA said...

Great list of links and resources. It can all be a bit overwhelming for a new nonprofit because there is so much to learn. The IRS is trying hard to use clear English, but it's still the IRS!

BTW, not all donations to tax exempt organizations are tax deductible. Only donations to 501(c)(3) organizations are tax deductible. But, since 80% of tax exempt organizations are 501(c)(3)s, I guess that covers what most people are familiar with.

Carol Topp, CPA

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