EO Tax Journal

The focus today is on filing requirements — for those who never filed, for those who can’t keep up with the latest Form 990 changes (chiropractic adjustments, rather than major surgery, according to the IRS’ Steve Clarke), and how new section 501(r) affects filing for this year.

1 – Post-October 15 Blues

Unless the IRS has another “Get out of jail free” card up its sleeve, small organizations that missed the October 15 final filing date are now in the soup (but don’t be surprised if Congress later comes to the rescue). For now, Alaska’s Sandy Deja has put together a 41-page ebooklet: Regain Your Tax Exempt Status and Other Options after IRS Automatic Revocation. It’s available atwww.501c3book.com for the low, low price of $8.95.

Contents of Regain Your Tax Exempt Status, by Sandra L. Deja, P.O. Box 10525, Fairbanks, AK 99710:

How To Use This Book
Introduction
Section I – Regain Your Exempt Status – New Application
Chapter 1 – Specific IRS Guidance
Chapter 2 – Re-application Advice
Section II – Regain Your Exempt Status – IRS Revoked In Error
Chapter 3 – No Return Was Required
Chapter 4 – Return Was In Fact Filed
Section III – Information About Group Exemptions
Section IV – Terminate Your Exempt Status
Section V – Do Nothing
Section VI – Links
_____________________________

2 – Form 990 and Section 501(r) Developments

What follows are the October 12 remarks of Stephen Clarke, EO Project Manager, IRS, and Garrett Gluth, EO Tax Law Specialist, IRS, as delivered at the annual tax program of the American Health Lawyers Association. Continue…

Ann Batlle and Marc Owens discussed IRS audits at the recent ALI-ABA conference, and today I have a transcript of their remarks. Last Thursday (Email Update 2010-161) I had the remarks of Peter Lorenzetti on EO audits from the IRS’ perspective. Continue…

Lots of good stuff is piling up on my desk, so I need to catch up over the next few days and my apologies for any delayed responses to incoming emails. Today, because of taping problems, I have abbreviated comments of Peter Lorenzetti, an IRS area manager, who discusses EO examinations. Most of the discussion should be familiar to those of you who are regularly engaged in audits, but he does mention a recent IRS move to a national EO closing agreement coordinator, Lisa Schultz, so that may be new news even for experienced hands. A recent letter from an EO revenue agent to me may add perspective to Peter’s comments. Tomorrow I will be commenting on the state of the EO function, and as homework I recommend, if you have time, reading Pablo Eisenberg’s article, “State and Federal Regulators Must Do More to Police Nonprofits,” that appears in the current issue (Nov. 4) of The Chronicle of Philanthropy.

I’m also including today an article from the Christian Science Monitor, “Advocacy Groups Won’t Get Supreme Court’s Ear on Campaign Finance,” that has been getting attention. If you can stand one more article on campaign finance, it’s recommended reading. Continue…

1 – IRS Needs a Reminder on Its Reminder

4 – Group Seeks Investigation of Voter Guides/Legislative Scorecards Continue…

1 – Old Business

2 – Partial Transcript of D.C. Bar Program on EO Politicking

The transcription process is always a challenge. In the case of a recent D.C. Bar program, I was unable to get a good recording of the remarks of Karl Sandstrom, one of the speakers. Rather than tossing the transcript, I am sending along the remarks of Jim Joseph and Marc Owens. If Karl would like to work on his comments, I would be happy to send him what we have.

With Halloween coming, I am reminded of what happened to one set of tapes I sent my transcriber a few years ago. Apparently her mailperson left the envelope containing the tapes on her door sill. The day being Halloween, trick-or-treaters who came by must have been irritated that she was not home to give them candy, so they ripped the envelope apart and threw the tapes in her bushes. When I told her later that the tapes should have arrived, she looked around and luckily found them intact in the bushes. I guess you could say a tape in the hand is worth two in the bush.

3 – Clergy VOICE’s Letter to IRS re the Fellowship Foundation

Last week I reprinted (Email 2010-148) a Washington Post article, “Sponsor of National Prayer Breakfast Received Money from Alleged Terrorist Group.” Today I’m reprinting the letter that was the basis for the article. Continue…