Many Tax-Exempt Organizations Must File with IRS By May 15 to Preserve Tax-Exempt Status

A key deadline of May 15 is facing many tax-exempt organizations that are required by law to file annual reports with the Internal Revenue Service. Organizations will see their federal tax exemptions automatically revoked if they have not filed reports for three consecutive years.

Read more here.

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IRS Smartphone App IRS2Go–Now Available in Spanish

The Internal Revenue Service announced today the release of IRS2Go 3.0, an update to its smartphone application that offers practical tax tools and information for the first time in either Spanish or English.

The free mobile app offers taxpayers a number of safe and secure ways to access popular tools and the most up-to-date tax information. For the new version, IRS2Go is available for the first time in Spanish. The taxpayers’ phone language settings determine whether the IRS2Go content appears in English or in Spanish.

 

Click here for a list of the resources available via this bilingual app.

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Many Retirees Face April 1 Deadline To Take Required Retirement Plan Distributions

The Internal Revenue Service reminded taxpayers who turned 70½ during 2012 that in most cases, they must start receiving required minimum distributions (RMD) from individual retirement accounts (IRA) and workplace retirement plans by April 1.

 

 

The April 1 deadline applies to owners of traditional IRAs but not Roth IRAs. Normally, it also applies to participants in various workplace retirement plans including 401(k), 403(b) and 457 plans.

The special April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by Dec. 31. So, for example, a taxpayer who turned 70½ in 2012 who receives the first required payment on April 1, 2013 must still receive the second RMD by Dec. 31, 2013.

 

For more information, click on link below:

 

http://www.irs.gov/uac/Newsroom/Many-Retirees-Face-April-1-Deadline-To-Take-Required-Retirement-Plan-Distributions

 

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Offer in Compromise Pre-Qualifier–IRS

http://irs.treasury.gov/oic_pre_qualifier/

The IRS Offer in Compromise (OIC) Pre-Qualifier tool can help you determine a client’s OIC eligibility and calculate a preliminary offer amount.

To access the Pre-Qualifier. Here is the correct link.

Use this tool to see if you may be eligible for an offer in compromise. Enter your financial and tax filing status to calculate a preliminary offer amount. IRS makes its final decision based on your completed OIC application and associated IRS investigation. This tool should only be used as a guide. Although it may show you can full pay your liability, you may still file an offer in compromise and discuss your individual financial situation with the IRS.

 

If you reside in a U.S. Territory, foreign country, or are military personnel using an APO or FPO address the OIC Pre-Qualifier is not applicable for your situation. Please proceed to the application in the Offer in Compromise Booklet.

 

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Treasury and IRS Issue Final Regulations to Combat Offshore Tax Evasion

1.  Treasury and IRS Issue Final Regulations to Combat Offshore Tax Evasion

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Treasury Advances Efforts to Secure International Participation, Streamline Compliance, and Prepare for Implementation of the Foreign Account Tax Compliance Act

Press release

 

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2.  TD 9610 Final Regulations

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TD 9610 Final Regulations (Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities) are now live on the Federal Register website.

The filing date is Jan. 17 and the publication date is Jan. 28, 2013.

TD 9610 Final Regulations

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FAQs About Electronic Filing ID Numbers (EFIN), Including Compromised EFINs

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IRS has posted Frequently Asked Questions (FAQs) to help Authorized IRS e-fileProviders (Providers) understand the correct usage of Electronic Filing Identification Numbers (EFINs).  Providers must ensure that they are using their correct EFIN.

When a Provider is doing business with another Provider, you must check to see that the other Provider also has a valid EFIN.

 

 

How do I know if my EFIN has been compromised?

Check the EFIN status of your application at http://www.irs.gov/Tax-Professionals/e-services—Online-Tools-for-Tax-Professionals to make sure the summary of the volume of returns e-filed in the last two years matches your records. If it does not match, your EFIN may have been compromised. Call the e-help desk at 866-255-0654 (6:30 AM to 8:00 PM Central) to report a possible compromised EFIN.

IRS Exempt Organizations Select Check – YouTube

 

Learn how to search for charities and other nonprofits using the IRS online tool called Select Check in this new YouTube video.

Watch this and other videos on the IRS YouTube Channel.

 

StayExempt.org

 

The IRS office of Exempt Organizations (EO) is pleased to present“Stay Exempt”–a series of dynamic and comprehensive tax coursesthat can help your tax-exempt organization maintain its exempt status and meet its filing requirements.

As part of the Tax Exempt and Government Entities (TE/GE) operating division of the Internal Revenue Service, EO strives to support the IRS mission of ensuring that all customers understand and meet their tax responsibilities.  It does this by offering specialized assistance to the full range of organizations exempt from Federal income tax under the Internal Revenue Code.  EO’s programs and services help these organizations understand and comply with tax laws and regulations governing their tax-exempt status.

The Director of EO plans, manages, directs, and executes nationwide activities for EO.  The Director reports to the TE/GE Division Commissioner. The Director also supervises and is responsible for EO’s offices of Customer Education & Outreach, Rulings & Agreements, and Examinations.

The EO Customer Education & Outreach office coordinates, assists, and supports the development of internal and external communications, forms and publications, and external education and outreach efforts, including this website.

The EO Rulings and Agreements office processes applications for tax exemption and provides direction through private letter rulings and technical guidance.

The EO Examinations office promotes compliance by analyzing operational and financial activities of exempt organizations.  These activities include developing processes to identify areas of noncompliance, developing corrective strategies, and assisting other EO functions in implementing these strategies.

To find out more about EO, or for more information about exempt organization tax compliance issues, visit the EO pages  at the IRS website.   For account-specific questions, call TE/GE’s Customer Account Services, toll-free, at 877-829-5500.

 

Here’s an example of the materials available:

 

 

Presentation 1: Navigating IRS Resources for Tax-Exempt Organizations Published: June 30, 2011 Ever wonder what the IRS Web site contains for exempt organizations? This mini-course will show you what’s available and how to find it. Download Printable PDF Presentation | Download Playable PDF Presentation

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation-IRS

English: Mortgage debt (Photo credit: Wikipedia)

English: Mortgage debt (Photo credit: Wikipedia)

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition. More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.   Click here for the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation.

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Webinars for Exempt Organizations- July 25 Webinar: Churches and Religious Organizations

This free webinar explains federal tax rules of interest to churches and religious organizations. Watch this webinar to learn:

• When it comes to taxes, what is a “church?”
• What is a “religious organization?”
• How do you apply for tax exempt status?
• How to stay exempt: Do’s and don’ts
• Special rules for compensation of ministers
• Recordkeeping and filing
• Rules limiting an IRS audit of a church

 

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