While the IRS finally agreed to reevaluate regulations concerning politically minded 501(c)(4)s, the NY Attorney General isn’t happy just sitting around and waiting. Instead, NY AG Eric Schneiderman recently sent letters to over 20 politically motivated 501(c)(4) organizations, asking for tax and other financial records. Democratic and republican organizations alike are receiving these requests, including …
Posts Tagged: IRS
Great News for Nonprofits with LLC Subsidiaries
501(c)(3) organizations frequently create single member limited liability companies to hold assets, some as subsidiaries to protect against risk. However, until now, the IRS would not state whether donations to these single member LLCs were deductible as charitable contributions. As of today, that has all changed. The IRS just released a notice that donations to …
IRS is Happy with New Form 990
Last week, at a hearing of the US House of Representatives Ways and Means Oversight Subcommittee, IRS Deputy Commissioner for Services and Enforcement, Steven Miller, commented on the redesigned Form 990, which was unveiled in 2008. Mr. Miller said that the IRS is happy with the result of the redesigned Form 990, but he also …
IRS Considers Reevaluating Politically Minded 501(c)(4) Orgs
As we posted here and here, advocates for campaign finance reform have been demanding for the past year that the IRS investigate politically motivated “social welfare” or 501(c)(4) organizations. These calls to action have finally paid off. Lois Lerner, the director of the IRS Exempt Organizations Unit, stated last week that the “IRS is aware …
The Devil is in the Details
How carefully do you follow IRS rules when making a charitable donation? We’ve posted before about the importance of charities providing adequate acknowledgments to donors, but the duty isn’t just one-sided. If you are making a charitable donation, it is just as important for you to follow the rules. Wondering how bad it could be …
IRS Increases Scrutiny of 501(c)(3) Political Activity During Election Cycle
Our clients often ask whether they can participate in legislative and political activity. While we encourage clients to lobby on behalf of their interests within the limits prescribed by law (see our previous post), 501(c)(3) organizations cannot engage in activity that supports or opposes candidates for public office. As you know from reading our previous …