New Group Ruling Letter for Catholic Entities Available

The annual group ruling letter for Catholic Entities has been issued and is available on the internet at the following address: http://www.usccb.org/ogc/2007GroupRulingMemo.pdf The cover letter by the USCCB Office of General Counsel provides a helpful update on changes in tax law in 2007.

New Exempt Status Determination Procedures

Revenue Procedure 2007-52 sets forth the procedures for issuing determination letters and rulings on exempt status of organizations under section 501 and 521 of the Code. It also applies to revocation and modification of determination letters or rulings, and provides guidance on the exhaustion of administrative remedies for purposes of declaratory judgment under section 7428. It will be published in IRB 2007-30 dated July 23, 2007.

New Information Reporting Requirement for Many Nonprofits

The IRS is mailing educational letters this month to more than 650,000 small tax-exempt organizations that may be required to submit a new annual notice, Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ. Exempt organizations with receipts of less than $25,000 will need to file the e-Postcard in 2008. Get more information in news release IR-2007-129.

IRS: Exempt Organization Developments

The IRS issued an advance copy of Rev. Proc. 2007-52 setting forth the procedures for issuing determination letters and rulings on exempt status of organizations under sections 501 and 521. These procedures also apply to revocation and modification of determination letters or rulings, and provide guidance on the exhaustion of administrative remedies for purposes of declaratory judgment under section 7428.

In a separate development, the House Ways and Means Oversight Subcommittee will hold an overview hearing on tax exempt organizations according to Subcommitte Chairman John Lewis (D-GA). The hearing will focus on charities and foundations described in Internal Revenue Code section 501(c)(3) and will take place on Tuesday, July 24, 2007, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 a.m. More information.

IRS Unveils New "Life Cycle" Resource Tools

The IRS website has new information tools ("Life Cycles") to help guide tax-exempt organizations through the federal tax rules that pertain to them. These tools are resources for certain organizations exempt under IRC sections 501(c)(3), (c)(4), (c)(5), and (c)(6). The website provides information about points of intersection between organizations and the IRS with explanatory information and links to forms an organization may need to file with the IRS. Click here.