EO Tax Journal

I’ll begin the week by surveying the latest news for those of you who have been away traveling with President Obama.

1 – Not Another Cat Story

This story should give all cat lovers a warm feeling.

2 – The Chronicle of Higher Education’s Annual Salary Report

The New York Times and Washington Post — and I’m sure numerous other newspapers — weigh in on the The Chronicle of Higher Education’s latest salary report.

3 – Who Needs To Be a College President to Make Big Bucks?

The Baltimore Sun continues to do eye-opening exposes. Has anyone ever seen a Maryland state charity regulator? I haven’t, and I’ve lived in the state my entire life. The article notes that Maryland has a law that governs the composition of boards at nonprofits that receive public mental health funds, which says that no one can serve on the board of such an organization if an “immediate family member” works for that organization. I think that’s a great rule that should apply to all section 501(c)(3) public charities nationwide. Continue…

Today we have the intricacies of expenditure responsibility. Now if only the U.S. Government practiced expenditure responsibility, we wouldn’t need a national debt commission!

Expenditure Responsibility: Ten Puzzling Practical Problems

What follows are the September 24 remarks of Jerry McCoy, Law Office of Jerry J. McCoy, Washington, and Andrew C. Schulz, Council on Foundations, Arlington, Virginia, as delivered to members of the EO Committee of the ABA’s Tax Section. The moderator of the panel is Robert A. Wexler, Adler & Colvin, San Francisco. Continue…

1 – Cat Blamed for Starting Fire with Toaster Oven

2 – More on “Is More Always Better?”

3 – Just Hang Up on Charity Phone Solicitations Continue…

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…