Nonprofit Hospitals: Officials Target Them, Again

“Making sure that tax-exempt hospitals abide by their community benefit standards is a very important issue for me,” wrote Senate Finance Committee Chairman Chuck Grassley (R-IA) recently. This influential lawmaker has, once again, made clear he wants answers about “how many of the nation’s approximately 3,000 tax-exempt hospitals are in compliance with charity care requirements.”  It’s not the first time he has Read More

Tax Act Impact on Charities: New Report

In a number of posts in the last 18 months or so, we’ve reported on the fallout from the hastily adopted and not well-thought-out 2017 Tax Cuts & Jobs Act (TCJA). Most recently, in The Fringe Benefits Tax: Hope for Repeal (April 9, 2019), we told you about some possible (bipartisan) legislative action to repeal one of the provisions most disliked by the charitable sector: the new UBI tax on transportation fringe Read More

For Purpose Law to Host TEGE Exempt Organizations Update

On June 15th, 2018, For Purpose Law Group is excited to host the upcoming TEGE Exempt Organizations Council program “TEGE Exempt Organizations Update,” presented in cooperation with the Greater Washington Society of CPAs. This program will bring together current and former IRS regulators and private practitioners in the legal and accounting fields to discuss the latest statutory, regulatory, and judicial developments Read More

Form 990: Important Processing Changes

For many nonprofit organizations that operate on a calendar fiscal year, the due date for the annual Form 990, Return of Organization Exempt From Income Tax, was yesterday - May 15, 2018. Of course, an organization may choose to file Form 8868, Application for Automatic Extension of Time to File an Exempt Organization Return, to obtain an automatic extension for six months to file a Form 990. In light of some Read More

New Guidance for Nonprofits Making Corporate Changes

Many nonprofit organizations thrive year after year in the same location with the same mission, structure, activities, and operations. For others, though, large or small changes may be necessary or desirable; they and their advisors need to know if - and how - they must report these new developments to the Internal Revenue Service. For many decades, the Treasury Department and the IRS had issued confusing - and Read More

Denials of 501(c)(3) Tax Exemption: A New Study

For nonprofit law and policy geeks interested in the decision process of the IRS for 501(c)(3) tax exemptions, there's an important recent study available online through the Social Science Research Network (SSRN). Professor Terri Lynn Helge of Texas A&M University School of Law has written a first-of-its-kind analysis of IRS denials of Form 1023 (and 1023-EZ) exemption applications for the period 2004 through Read More

Johnson Amendment Stays … For Now

In mid-December 2017, when the GOP Congressional leadership was scrambling to get a tax-overhaul bill in final form - one that would meld the quite different House and Senate versions - an issue that could have gone either way, in or out, was the thorny matter of 501(c)(3)s dabbling or plunging headlong into the political arena.    History of Johnson Amendment Under the 1954 Johnson Amendment to an earlier Read More

Tax Legislation: What was Left Out (Nonprofits)

In Nonprofits: What’s in the New Tax Law, we reported on the items of interest to nonprofits that had made their way into the final version of H.R.1, the Tax Cuts and Jobs Act that was signed into law at the White House. Other proposals in the legislative package dropped off, especially in the December 2017 rush to put together a tax overhaul that would pass both the House of Representatives and the Senate. The final Read More

Nonprofits: What's in the New Tax

In Nonprofits: Happy New  (Tax Plan) Year! , we caught up to date with a general overview of the whirlwind tax law changes proposed, adopted, and made effective by the federal government in late December 2017.   Some of the key concerns expressed by nonprofit organizations, experts, and advisers focused on the major changes to the standard deduction and to the federal estate tax which - many believe - will have a Read More

Nonprofits: Happy New (Tax Plan) Year!

In the hundred years or so since the modern federal income tax was first established in 1913, there have been several comprehensive overhauls. Congress, seeing the need to fix problems or meet new and changing conditions, acted. The most recent significant revision of the Internal Revenue Code was in 1986 when President Reagan, the Treasury Department, and Congress worked for almost two years to develop and write a Read More