June 21, 2007

IRS Releases Discussion Draft of Redesigned Form 990 for Tax-Exempt Organizations

The IRS released for comment and discussion a draft Form 990, the annual return required to be filed by tax-exempt organizations to report information about their operations. The comment period lasts until Sept. 14, 2007. For details on providing comments, see news release IR-2007-117.

June 14, 2007

News from the IRS

1. Comments Requested on Draft Redesigned Form 990 The IRS released for comment and discussion proposed revisions to Form 990, Return of Organization Exempt from Income Taxation. The IRS hopes to have the form ready for use for the 2008 filing year (returns filed in 2009).
2. Report of the ACT The Advisory Committee on Tax Exempt and Government Entities (ACT) has issued a report on project recommendations for the Tax-Exempt and Government Entities Division. The report includes a proposal for an Exempt Organizations Voluntary Compliance Program.
3. Gaming Phone Forum Script The IRS has posted the script from a recent phone forum on "Gaming and Exempt Organizations."
4. Qualified Conservation Easement Guidance Notice 2007-50 provides guidance on new percentage limitations imposed by Internal Revenue Code section 170(b)(1)(E)(iii) on qualified conservation contributions made by individuals.

June 01, 2007

Political Campaign Activities of Exempt Organizations

Revenue Ruling 2007-41 provides guidelines for exempt organizations on the scope of the the tax law prohibition of campaign activities by section 501(c)(3) tax-exempt organizations. The ruling sets out 21 factual situations involving 501(c)(3) organizations, including churches, and activities that may be prohibited campaign intervention. In each situation, the ruling applies tax law and regulations and concludes that prohibited political activity has or has not occurred.
The IRS also released its Report on the Political Activity Compliance Initiative for the 2006 election cycle. This report, PACI 2006, follows the report on prohibited political intervention in the 2004 election cycle, which was issued in February 2006.
IRS Reports on Political Activity Compliance Initiative (2004)