Website Upgrade in Progress

My regular website is under construction - changing host and domain registrar. It may be hard to access for the rest of the year. Try www.ahereford.com in the interim. See next year's scheduled webcasts:

February 16, 2010: Basic Taxation of Religious - 2010 Update This popular one hour webcast will discuss the preparation of the tax return for religious with taxable income, including an update on 2010 tax issues.

May 18, 2010: Transfer to Another Religious Institute This one hour webcast will examine the process of transfer of a member to another religious institute, including the conditions and effects of the transfer. It will also discuss issues that arise in this process.

August 17, 2010: Civil Structures of Religious Institutes This webcast will examine those civil structures used by religious institutes to carry out their life and work in the civil sphere. Registration Blessed Christmas! Amy

Videos on New 990 - Application Fee Increase

990 Video Series IRS Exempt Organizations has launched a new case study and video program to help exempt organizations and their tax preparers better understand the newly revised Form 990 series which must be filed for the 2008 tax year. The case study includes a set of facts describing organizational and financial aspects of a hypothetical exempt organization, and a completed Form 990 based on those facts. A video series walks you through key reporting issues common to most organizations required to file Form 990.
User fees will increase for all applications for exemption (Forms 1023, 1024, and 1028) postmarked after January 3, 2010:

• $400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period
• $850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period
• $3,000 for group exemption letters.

A complete schedule of all user fees will be published in the annual procedure released in January 2010.
Cyber Assistant, a Web-based software program designed to help 501(c)(3) applicants prepare a complete and accurate Form 1023 application, will become available during 2010. Once the IRS announces the availability of Cyber Assistant, the user fees will change again:

• $200 for organizations using Cyber Assistant (regardless of size) to prepare their Form 1023
• $850 for all other organizations not using Cyber Assistant (regardless of size) to prepare their Form 1023.

IRS will announce when Cyber Assistant is available and the effective date of the user fee change. Subscribe to the EO Update to automatically receive an alert that Cyber Assistant is available.

IRS Publication on Group Exemptions

There is a new IRS publication on group exemptions. This fact sheet provides answers to questions of interest to parent organizations, subordinates and donors.

Charitable Giving Calculators

Calculators for charitable giving and other information about tax planning for charitable giving are found on the Food for the Poor website. Because of today's economic climate, donations are more necessary, and more complex gifts may be more helpful in meeting needs of charitable organization.

More IRS News

1. New! On-line Tool to Help EOs Complete 2008 Form 990: Form 990: Getting Started - A Case Study

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Thousands of tax-exempt organizations are in the process of gathering information and completing the redesigned 2008 Form 990. This new on-line tool uses a practical example to show organizations how to address key areas of the redesigned Form 990 and Schedules. An organization can compare its own situation to the case study and learn how to properly complete its own form.

Getting Started includes a sample filled-in Form 990 and Schedules A and O, prepared using information about a hypothetical organization's mission, board of directors, financial information and policies. This series of seven, short, on-line videos explain how to complete key sections of the Form 990 and highlights some of the form changes. Find this new on-line resource as well as other resources for 990 filers on IRS.gov

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2. New! Mini-Course Provides Overview of Form 990-EZ

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Because of changes in filing thresholds, many more organizations are eligible to file Form 990-EZ. To learn whether your organization may file the EZ and to learn more about this shorter, simpler form, watch this mini-course at www.StayExempt.irs.gov.

New from the IRS

1. Exemption Application User Fees to Change in 2010 User fees will increase for all EO applications for exemption (Forms 1023, 1024, and 1028), postmarked after January 3, 2010. Cyber Assistant, a Web-based software program designed to help 501(c)(3) applicants prepare a complete and accurate Form 1023 application, will become available during 2010. Once Cyber Assistant is made available, user fees for Form 1023 will change again.
2. New Process for Supporting Organizations to Change Public Charity Classification The IRS has modified the procedures for reclassifying section 509(a)(3) supporting organizations as public charities. Announcement 2009-62 updates procedures for such requests to be consistent with new regulations eliminating the advance ruling process.
3. Register Now for Fall Workshops for Small and Mid-Sized 501(c)(3) Organizations These introductory one-day workshops, designed for administrators or volunteers responsible for an organization's tax compliance, will be held in Philadelphia, PA on October 6, 7, and 8, 2009. Get more information and register online.
4. IRS on YouTube? A new IRS YouTube video site and an iTunes podcast site will help taxpayers learn more about tax provisions in the American Recovery and Reinvestment Act.

990 and Church Tax Inquiries

1. Form 990 Filing Tips and FAQs: Related Organizations
The IRS is providing a series of filing tips and FAQs to help Form 990 filers file a complete and accurate return. Today's Form 990 tips and FAQs address questions pertaining to Form 990 reporting of arrangements between a filing organization and related entities. Schedule R is used to report information regarding related organizations and certain unrelated partnerships. Today's tips also address general reporting requirements for group returns.
2. Proposed Regulations Clarifying Procedures for Authorizing Church Tax Inquiries
The IRS and Department of Treasury have issued proposed regulations under IRC Section 7611 to clarify the procedures for authorizing church tax inquiries and examinations. The proposed regulations replace references to positions that were abolished under the IRS Restructuring and Reform Act with references that are consistent with the statute and IRS's current organizational structure. Written or electronic comments and requests for a public hearing must be received by November 3, 2009.

IRS Educational Materials

Governance and Tax-Exempt Organizations Materials used as part of a continuing education program for IRS Exempt Organizations personnel on governance and tax-exempt organizations are now available on IRS.gov.

Register Now for Fall Workshops for Small and Mid-Sized 501(c)(3) Organizations These introductory one-day workshops, designed for administrators or volunteers responsible for an organization's tax compliance, will be held in Indianapolis, IN (September 15, 16, and 17) and Philadelphia, PA (October 6, 7. and 8).

Federal Minimum Wage Increase

The federal minimum wage for covered non-exempt employees rises from $6.55 to $7.25 per hour July 24.

New from the IRS on Exempt Organizations

Form 990 Filing Tips and FAQs: Governance The IRS is providing a series of filing tips and FAQs to help Form 990 filers file a complete and accurate return. More Information New Information about Mergers and Terminations Most tax-exempt organizations that end their operations, either through shutting down, transferring their assets or merging with another tax-exempt organization, must inform the IRS about the details of the action. Get information about the proper way to inform the IRS about your termination on IRS.gov. New publication.

Voluntary 990 Compliance

In its 2007 report, the Advisory Committee on Tax Exempt and Governmental Entities (ACT) identified the PPA threat of automatic revocation for failure to file the 990 as a powerful incentive to encourage non-filing tax-exempt organizations to rectify their reporting failures. The ACT recommended that the IRS implement a voluntary compliance program to help bring non-filers into compliance before the automatic revocation process begins, and in FY 2009, the IRS expects to implement an Exempt Organizations Voluntary Compliance Program (EOVCP) to address the concern.

ALSO: In September 2008, the IRS and the Treasury Department issued new regulations that streamlined the approval process for organizations seeking tax-exempt status as publicly supported charities. The new regulations eliminated the so-called “advance rulings” that granted public charity status for an initial five-year period but required exempt organizations to demonstrate, after that period, that they received enough public support to retain their public charity status.

Important information from the IRS

Newsletter from the IRS has several important notices for Nonprofits:

1. Charitable Hospitals: Modern Trends, Obligations and Challenges
2. Reqister Now for Spring Workshops for Small and Mid-Sized Exempt Organizations
3. Revised Procedures for Issuance of Ruling and Information Letters
4. New User Fees for Exempt Organization Matters
5. New Mailing Address for Applications for Exemption

Rather than summarize them here, I'll just direct you to the IRS's newsletter which is a good source of current information for Exempt Organizations.