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…

1 – Old Business

In regard to critiques of the EO function in these pages in recent days, Tex writes that the IRS folks are starting to remind him of his beloved Dallas Cowboys. Switching analogies, Tex gives the IRS until the end of the year before he says three strikes and you’re out.

Strike One is no FY 2011 workplan: “We haven’t seen one for two years,” he says. Strike Two is no PACI report. Tex notes that the 2008 PACI report is now over a year-and-a-half late. Strike Three is the 7611 regs, proposed in July 2009. “That should have been a two-minute drill,” he says. He wants to know why the IRS can’t make a couple of decisions and be done with this mini-project, especially at a time when some churches are openly challenging the IRS on politicking.

My view: The IRS has about three weeks to accomplish any of these objectives this year. Once December arrives, the IRS pretty much shuts down as people start using their accumulated leave time.

2 – Medical Residents Have Their Day in Supreme Court

Kudos to the New York Times for having the Supreme Court briefs filed in Mayo Foundation for Medical Education and Research, et al. v. U.S. Just go online (www.nytimes.com) to the story below and click on the briefs. 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…

1 – Is More Always Better?

2 – What the IRM has to say about TE/GE’s Roles and Responsibilities 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…