To provide crucial support to nonprofits navigating the labyrinth of tax regulations, the Internal Revenue Service’s Exempt Organizations and Government Entities unit has unveiled two extensive technical guides. These guides, tailored for tax-exempt groups and credit unions, serve as valuable resources to enhance understanding and compliance.
The first of the guides, TG 48: Unrelated Business Income Tax, takes a deep dive into the intricate landscape of unrelated business income and the associated tax implications. It is a comprehensive update, consolidating the Audit Technique Guides and other technical content into a singular, issue-specific document. The second guide, TG 14: Credit Unions and Mutual Reserve Funds IRC Section 501(c)(14), sheds light on the nuanced tax exemption criteria applicable to credit unions under Section 501(c)(14)(A) and mutual reserve fund organizations outlined in Sections 501(c)(14)(B) and (C) of the Tax Code.
These meticulously crafted guides are positioned to replace corresponding Audit Technique Guides, offering nonprofits and credit unions an updated and consolidated reference for staying compliant and avoiding audits.
In addition to these technical guides, the IRS is extending a helping hand through a complimentary 10-course workshop explicitly designed for Section 501(c)(3) tax-exempt organizations and those aspiring to secure federal tax-exempt status. Accessible online at stayexempt.irs.gov, this virtual workshop provides interactive instruction covering essential topics. The workshop is a robust educational resource, from the intricacies of applying for and maintaining tax-exempt status to navigating employment issues, understanding required disclosures, and gaining insights into a comprehensive Form 990 overview.
The workshop does not shy away from addressing critical and complex subjects such as unrelated business income, charitable gaming for exempt organizations, deduction of philanthropic donations, and safeguarding Social Security numbers. Of particular note is the in-depth exploration of the intricate and often challenging topic of political campaigns and charities. The IRS emphasizes the potential risks of political campaign activity, underscoring that such activities could jeopardize a Section 501(c)(3) organization’s exempt status.
In a recent communication to exempt organizations, the IRS highlighted the significance of understanding and adhering to regulations, stating, “Political campaign activity can jeopardize a Section 501(c)(3) organization’s exempt status. This course provides examples of prohibited activities and explains steps an organization should take to avoid an inadvertent violation.”
These robust resources underscore the IRS’s commitment to supporting tax-exempt organizations, equipping them with the knowledge and tools necessary to navigate the complexities of tax regulations confidently. For nonprofits and credit unions seeking to enhance their understanding and compliance, these guides and workshops represent invaluable resources and strategic assets in their organizational toolkit.
These resources reflect the IRS’s commitment to supporting tax-exempt organizations, ensuring they navigate the complexities of tax regulations with confidence and clarity. For nonprofits and credit unions looking to enhance their understanding and compliance, these guides and workshops represent valuable tools in their arsenal.
Source ( Accounting Today News).
