IRS Exempt Update - January 13, 2012 - 01-13-2012 : Texas Association of Nonprofit Organizations article contact: Mary Beth Harrington articles for Texas Association of Nonprofit Organizations in Texas USA Texas Association of Nonprofit Organizations

EO Update - e-News for Charities and Nonprofits

January 12, 2012

Issue Number: 2012-1

Inside This Issue

1. Updated Procedures for Issuance of Rulings and Determinations

Review the following annual procedure updates that affect tax-exempt organizations.

Revenue Procedure 2012-4 updates procedures for the issuance of Exempt Organizations and Employee Plans letter ruling requests.
Revenue Procedure 2011-5 explains when and how Exempt Organizations Technical (SE:EO:RA:T) provides technical advice to area managers and appeals offices regarding exempt organizations matters.
Revenue Procedure 2012-9 sets forth procedures with respect to issuing determination letters and rulings on the exempt status of organizations under § 501 and § 521 of the Code. The procedures also apply to the revocation and modification of determination letters or rulings, and provide guidance on the exhaustion of administrative remedies for purposes of declaratory judgment under § 7428 of the Code.
Revenue Procedure 2012-10 sets forth updated procedures with respect to issuing rulings and determination letters on private foundation status under § 509(a) of the Code, operating foundation status under § 4942(j)(3), and exempt operating foundation status under § 4940(d)(2), of organizations exempt from Federal income tax under § 501(c)(3). This procedure also applies to the issuance of determination letters on the foundation status under § 509(a)(3) of nonexempt charitable trusts described in § 4947(a)(1).

2. 2012 User Fees for Exempt Organizations Matters

Revenue Procedure 2012-8 provides guidance for complying with the user fee program of the Internal Revenue Service as it pertains to requests for letter rulings, determination letters, etc., on matters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division.

See IRS.gov for general information on the TE/GE user fee program and a listing of the exempt organizations user fees for 2012.

3. More Guidance on Reporting Employer Health Care Coverage on Forms W-2

IRS Notice 2012-09 provides additional guidance regarding the requirement that certain employers report the value of employer-sponsored health care coverage on the employees’ Forms W-2. The notice restates and amends the interim guidance in Notice 2011-28.

Notice 2012-09 provides interim guidance that generally is applicable beginning with 2012 Forms W-2 (forms required for 2012 that employers are generally required to give employees by the end of January 2013). Read more about the provision on the ACA pages of IRS.gov.

4. Renew Your Preparer Identification Number

All Preparer Tax Identification Numbers (PTINs) expired on December 31, but the system will continue to accept renewals after the deadline. If you are experiencing technical difficulties when attempting to renew, please review the online troubleshooting tips. Additional guidance will be sent to individuals with expired PTINs in January. Find complete information about the PTIN requirements for practioners on IRS.gov.

5. Workshops for Small and Medium-Sized Exempt Organizations

Start off the new year right by planning to attend one of our workshops for small and medium-sized 501(c)(3) organizations.

Each one-day workshop, presented by experienced Exempt Organizations specialists, will explain what 501(c)(3) organizations must do to keep their tax-exempt status and comply with tax obligations. This popular introductory workshop is designed especially for administrators or volunteers who are responsible for an organization's tax compliance as well as those interested in careers in the nonprofit sector.

To register click on the city of your choice. Registration is now available for the following workshop locations:

Montgomery, AL (January 24) and Mobile, Alabama (January 26) hosted by Auburn University
Bloomington IN (February 28) and Indianapolis, IN (February 29) hosted by the Indiana University -Bloomington School of Public and Environmental Affairs and the Center on Philanthropy at Indiana University
South Orange, NJ (March 14) hosted by Seton Hall University
Glassboro, NJ (March 15) hosted by Rowan University
Learn more about the Seton Hall University and Rowan University workshops

Workshops are also planned in:

San Diego, CA (April 24), hosted by University of San Diego - Nonprofit Leadership & Management Program
San Francisco, CA (April 26), hosted by San Francisco State University - Nonprofit Management Certificate Program
Lincoln, NE (May 22) and Kearney, NE (May 24) hosted by University of Nebraska - Lincoln - Extended Education & Outreach/Department of Conferences & Professional Development

More information will be available soon.

Check our Calendar of Events for the latest information.

6. SSA/IRS Reporter Features Informative EO Articles

The SSA/IRS Reporter provides information for employers from the IRS, Social Security Administration and the American Payroll Association. The Winter issue includes articles of interest to exempt organizations on the IRS Voluntary Classification Settlement Program and a planned new round of outreach to small businesses and practitioners on the Small Business Health Care Tax Credit.

7. Revised Form 2848, Power of Attorney and Declaration of Representative

The revised Form 2848 (PDF) and instructions issued in October 2011 include several changes of interest to tax-exempt organizations including:

a new requirement that practitioners enter their license, bar or enrollment number
a new designation for registered tax return preparers
a new location for the check box authorizing the IRS to send notices to the representative

8. Fact Sheet 2012-5, Choosing a Tax Preparer

The new IRS fact sheet on Choosing a Tax Preparer provides useful tips individuals and exempt organizations should consider when selecting a professional to prepare their returns.

Taxpayers should use only preparers who sign the returns they prepare and enter their Preparer Tax Identification Numbers (PTINs).

If you have a technical or procedural question relating to Exempt Organizations, visit the Charities and Nonprofits homepage on the IRS.gov Web site.

If you have a specific question about exempt organizations, call EO Customer Account Services at 1-877-829-5500.

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IRS Exempt Update - January 13, 2012

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Issue Number: 2012-1

Inside This Issue