The IRS has issued guidance that provides reliance criteria for private foundations and sponsoring organizations that maintain donor advised funds in determining whether a potential grantee is an organization described in section 509(a)(1), (2) or (3) of the Internal Revenue Code.
You can read all about here, in Rev. Proc. 2009-32; 2009-28 IRB 1.
Beginning January 1, 2009, officers of for-profit corporations who provide services in Washington will be covered for unemployment insurance unless their employer specifically exempts them. If a corporation wants to exempt its officers from coverage, it must register its officers by completing a registration form and it must send Washington’s Employment Security Division an exemption request form by January 15th for the exemption to be effective January 1, 2009. If the exemption request is sent after January 15, it will not take effect until 2010. Click here to visit the Employment Security Division’s website for forms and more information.
The IRS has finalized the 2008 Form 990, Form 990-EZ, schedules, and instructions for filing in 2009. Also, the IRS has published materials that highlight significant changes to the Form and instructions. This information may help you, so click here to have a look.
In September, 2008, the IRS and the Treasury Department issued new regulations that will streamline the approval process for organizations seeking tax-exempt status as publicly supported charities.
The new regulations do away with the so-called advance rulings that granted public charity status for an initial 5-year period but required exempt organizations to demonstrate, after the initial period, that they in fact received a substantial part of their support from public sources to receive a final determination letter.
The IRS was able to eliminate the advance rulings process because of the recent redesign of the Form 990, the tax return filed by organizations exempt from federal income tax.
Private foundations under federal law are subject to more restrictions on the way they operate than publicly supported charities. To apply for exempt status either as a private foundation or as a publicly supported charity, an organization must file a Form 1023, the application for recognition of tax exemption.
Over the years, approximately 95 percent of exempt organizations that received advance rulings were later recognized as publicly supported charities at the end of the five-year period.
“Given the high ‘recognition’ rate and the redesigned Form 990, it makes sense to eliminate the burdensome advance ruling process” said Lois G. Lerner, Director of the IRS Exempt Organizations division. “Not only will the streamlined process aid exempt organizations, but it will also allow the IRS to redirect staffing to other program areas without compromising compliance.”
The IRS will use the new Form 990 and other traditional techniques to continue to ensure organizations are complying with the rules for publicly supported charity status on an ongoing basis.
Organizations that have already received an advance ruling under the old regime, but are still in their first five years of existence, can use their advance ruling letter as their final determination letter. In addition to the streamlined approval process, the new regulations include other modifications necessary to implement the redesigned Form 990. Organizations will begin filing the new Form 990 for their 2008 tax year.