| Subject |
What's New |
| Electronic filing requirements for small tax exempt organization |
With passage of the of the Pension Reform Act of 2006, Congress imposed an electronic filing requirement on all nonprofits. Effective January 1, 2008, small (< $25,000) exempt organizations are required to file Form 990-N electronically. The requirement applies to tax periods beginning after December 31, 2006. Remember the IRS is required to revoke the tax exempt status of any organization that fails to meet its filing requirement for three consecutive years. |
| Use of the U.S. Postal Service for charitable gaming activities |
In Customer Support Ruling PS-307 dated March 2002, the U.S. Postal Service clarified somewhat the rules for use of the mails in charitable gaming. Charitable organizations, provided the lottery is otherwise lawful, may use the mails for advertising lotteries, or to forward bona fide winning lottery prizes. However, the use of the mails to transmit materials for entering lotteries is still prohibited. For more information see the Domestic Mail Manual, C031.3.2 or consult with your local postmaster. |
| Charitable gaming and unrelated business income |
The Pension Protection Act of 2006 makes clear that some kinds of charitable gaming are exempt from unrelated business income tax. For example, bingo is exempted by law. The IRS is taking the position that the failure to list other forms of charitable gaming like pull-tabs means Congress does not intend those kinds of activities to be exempted from UBIT. At least they are announcing as much at webinars. |
| Conservation easement regulations |
The IRS has issued Notice 2007-50 providing guidance regarding deductions by individuals fro qualified contributions. |
| Supporting organizations and donor advised funds |
The IRS has issued Notice 2006-109 providing interim guidance for supporting organizations and donor advised funds at to the effects of the Pension Protection Act of 2006 on those entities. |