So, it turns out that the IRS Exempt Organizations division has been targeting for intense scrutiny conservative and right-leaning nonprofits which were applying for tax exempt status. This was admitted in an preemptive apology by Exempt Organizations director, Ms. Lois Lerner, in a news conference this past Friday. Ms. Lerner also stated that this was [...]
IRS to Speed Up Listing of Charities That Lost Status
We have discussed at great length the fact that all tax-exempt organizations are required to file some version of IRS Form 990 each year. As we have also discussed, failure to file a Form 990 for 3 consecutive years results in an automatic revocation of a nonprofit’s 501(c) status. Each month that passes adds to [...]
IRS Issues Changes to 501(c)(3) Status Effective Date for New Nonprofits
About this time every year, the IRS issues a number of Revenue Procedures, which are official, formal pronouncements regarding the manner in which it will handle specific tax situations. Revenue Procedures don’t exactly make law (only Congress can do that…theoretically, anyway), but rather provides a written guideline regarding how the IRS will handle an issue. [...]
IRS Scrutiny of New Nonprofits on the Rise
Applying for tax-exempt, 501(c)(3) status has always been a formidable process for the uninitiated. From the planning to the paperwork to the IRS follow-up, it has never been a walk in the park. The Foundation Group has worked with nearly 13,000 nonprofit startup clients since our founding in 1995. Over the years, we have seen [...]
IRS Mishandling Some 501(c)(3) Applications
Cincinnati, we’ve got a problem! Lately the Internal Revenue Service Exempt Organizations Division has begun to monkey around with the way it treats organizations applying for tax exempt status, particularly those nonprofits that have been around and operating for a number of years prior to filing. The situation has been confusing, contradictory and, frankly, at [...]
How to Start a Nonprofit
Helping people start nonprofit organizations is one of the most important things we do at Foundation Group. In fact, we have helped over 12,000 organizations get started since 1995. The following is really more of an overview than an exhaustive examination. Why Do You Want to Start a Nonprofit? Before we get into the “how” [...]
IRS To Publish Revocations of Tax Exemption
The day some nonprofits have dreaded is coming soon. The IRS announced on February 24, 2011 that it will soon publish the list of 501(c) nonprofit organizations that had their tax exemption automatically revoked for nonfiling of Form 990 information returns. This list, officially called the Nonfiler Revocation List, will be updated monthly once it [...]
One-Fourth of Nonprofits Set to Lose Tax Exemption
Doomsday is coming…May 18, 2010 to be exact. No, it has nothing to do with the Mayan calendar ending (that’s 2012!). May 18 is the day that nearly 1/4 of all US nonprofits find that the IRS has automatically revoked their tax exempt status. If you are doing the math, that is nearly 400,000 nonprofits. [...]
Scandal At The IRS: What Does It Mean For Nonprofits?
Posted on May 15, 2013 by Greg McRay in Commentary, Hot Topics, News
That’s the question everyone in our universe is asking this morning. With the IRS Exempt Organizations division in the crosshairs, what will all this mean to nonprofits going forward? It’s hard to guess until we see how explosive this gets. What we do know is outrageous. EO Revenue Agents working in the Cincinnati, DC and [...]