Final Regulations for Tax-Exempt Organizations to Provide Relief; The Internal Revenue Service (IRS) and the U.S. Department of the Treasury issued final regulations for tax-exempt organizations to provide relief. The final regulations (PDF) issued by the government agencies clarify that the reporting requirements are generally applicable to tax-exempt organizations. Recently, the IRS issued guidance for tax-exempt organizations to apply UBTI “Silo” Rules by Identifying separate trades or businesses.
Final Regulations for Tax-Exempt Organizations to Provide Relief
The final regulations for tax-exempt organizations to provide relief are comprised of statutory amendments in addition to certain grants of reporting relief. The IRS and the Treasury Department issued theses regulations to help certain tax-exempt organizations by providing them the reporting requirements in one place.
Among further provisions, the final regulations for tax-exempt organizations include the existing exception from having to file an annual return for certain organizations that in general have gross receipts of $50,000 or less than it. Previously, this exception was announced by the IRS in Revenue Procedure 2011-15. Furthermore, the final regulations for tax-exempt organizations to provide relief also cover one more point. According to this provision, the obligation for reporting contributor names along with addresses on annual returns usually applies merely to returns filed by Section 501(c)(3) organizations as well as Section 527 political organizations. It is mandatory for all tax-exempt organizations in USA to continue to maintain the names as well as addresses of their substantial contributors in their books and related records. This change will have no effect on transparency, as contributor information, which is open to public inspection will be unaffected by this regulation. Tax-exempt organizations are allowed by these final regulations to select the option to apply the regulations to those returns that are filed after September 6, 2019.
It must be noted the IRS has revised Form 1023 for tax-exempt organizations. Not only this, new tax law effects on tax exempt organizations are also outlined by the IRS. If you need any further assistance to understand final regulations for tax-exempt organizations to provide relief, Black Ink provides the best tax preparation services for tax exempt organizations near you in USA.