1. Rev. Proc 2010-8: New User Fees Apply to Exempt Organization Matters
New user fees apply to Exempt Organizations exemption applications, ruling requests and other matters for 2010. Consult section 6 of Revenue Procedure 2010-8 to ensure that you include the appropriate fee with your application for exemption or other ruling or determination request.
Applicants for exemption from Federal income tax, other than those filing Form 1023, should be sure to include the revised Form 8718, User Fee for Exempt Organization Determination Letter Request, with their submissions.
2. Revenue Procedure 2010-4: Updated Procedures for Issuance of Ruling and Information Letters
The IRS has revised procedures for for the issuance of ruling letters, information letters, etc., on matters related to Code sections under the jurisdication of the Commissioner, Tax Exempt and Government Entities.
3. Revenue Procedure 2010-5: Updated Guidance for Issuance of Technical Advice
Revenue Procedure 2010-5 explains when and how Exempt Organizations Technical provides technical advice to area managers and appeals offices regarding exempt organization matters and provides a general update of Revenue 2009-5.
4. IRS Proposes New Requirements for Tax Return Preparers
The IRS issued the results of a six-month study that proposes new registration, testing and continuing education requirements for tax return preparers. Read the report and recommendations on IRS.gov.
5. Statistical Information of Interest to Tax-Exempt Organizations
Review statistical studies of exempt organizations and individual noncash charitable contributions compiled by the IRS Statistics of Income Division and learn how to download and use EO Master File Data on IRS.gov.
6. IRS Urged to Help Small Charities
The Internal Revenue Service should collect information from small nonprofit groups about the kind of help they need to comply with tax-reporting requirements, then develop a plan to meet their needs, the agency’s advocate for taxpayers has recommended.
“Tax-exempt organizations must meet tax compliance and reporting obligations that can be surprisingly complex,” Nina E. Olson, the national taxpayer advocate, said in her annual report to Congress. “Smaller organizations, which constitute the majority of the tax-exempt sector, are more likely to face this complexity without the assistance of professional tax preparers.”
Only nine IRS employees are now primarily responsible for providing information and education to 1.8 million diverse tax-exempt organizations, the report says, and the agency has no way to obtain comprehensive information about which services the groups need or how they prefer to receive them.
Ms. Olson recommends the IRS design an “Exempt Organization Taxpayer Assistance Blueprint” — similar to one that was developed for individual taxpayers — to collect data and develop a plan to reach out to nonprofit groups. The data should be used to justify an increased budget for services to educate nonprofit groups, she adds.