The New England Not-For-Profit Accounting Advisor

Data-driven analytics are here to stay when it comes to compliance enforcement for not-for-profit organizations. The IRS Tax Exempt and Government Entities FY2018 Work Plan outlines strategies and approaches that the IRS will use to monitor tax compliance for tax-exempt organizations.

Topics: not-for-profit, IRS, Non-profits, NFP, tax compliance, Betty Isler, tax exempt bonds, NFP Compliance, 2018 IRS Work Plan, tax-exempt organizations, IRS Work Plan

The healthcare and educational sectors brought renewed scrutiny to nonprofits’ unrelated business income activity in recent years. High rates of noncompliance in the IRS College and University Compliance Project Final Report and renewed focus on spending in the healthcare sector have regulators taking an especially close look at the issue of unrelated business income tax (UBIT).

Topics: not-for-profit, Non-profits, NFP, Betty Isler, unrelated business income (UBI), UBIT

Lobbying is among the most effective tools not-for-profits have to promote their causes. Not-for-profit and charitable organizations routinely lobby Congress and local governments in support of specific objectives. Whether it is to feed the homeless, rehabilitate drug abusers, support community arts, protect wetlands or serve countless other local, regional, national and international purposes, not-for-profits are permitted to engage in lobbying activities as long as they meet certain guidelines put forth by Congress and the IRS.

Topics: lobbying, not-for-profit, Non-profits, NFP, Betty Isler

The IRS is developing a technology solution that would streamline its ability to release digital copies of the Form 990 tax information filings. An announcement about the option comes on the heels of a U.S. district court ruling that ordered the IRS to produce digitally readable Forms 990 of nine organizations. Currently, the IRS releases digital copies of Forms 990 as image files. The new software would produce versions of the Forms 990 in the Metadata Exchange Format, also known as a machine-readable format and remove any personally identifiable information from the Form 990. It is slated for release in early 2016.

 

Topics: Form 990, Betty Isler

Tax filing may be a longer process for supporting organizations this year. The recently released 2014 Form 990, Schedule A, Public Charity and Public Support indicates 509(a)(3)s will face additional reporting requirements. Organizations that are not functionally integrated with the public charities they support will face the brunt of the additional requirements, which come as part of the changes required by the Pension Protection Act of 2006.

Topics: Form 990, Betty Isler, Schedule A