Posts Tagged ‘Tax’

14 tax issues to watch after the election

Friday, November 9th, 2012

These personal tax matters could see changes in 2013, depending on who wins the White House.
Whatever happens in the election on Nov. 6, the next Congress and president will face a heaping helping of unfinished tax business. Here’s the second part of our two-part story on the most important unresolved personal tax issues — along with some fearless predictions.

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Supreme Court’s health care decision affects many tax provisions

Thursday, July 19th, 2012

The Supreme Court’s decision upholding the individual mandate in the health care law had a surprisingly large number of tax ramifications. Because much of the health care law was enacted through the Internal Revenue Code, the court’s decision to let the law stand means that numerous tax provisions will take effect over the next few years. Many of those provisions involve health care, but some, such as the 3.8% tax on net investment income and the codified economic substance doctrine, don’t, and may surprise taxpayers.

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Political Activity – Can You Participate?

Tuesday, May 31st, 2011

A 501(c)(3) organization is absolutely prohibited from participating in any political campaign at all levels, national, state and local.  Political intervention includes candidate endorsements, contributions to political campaign funds, public statements of support or opposition to candidates, distributing information/pamphlets, etc. made by others in support or opposition to candidates and any other similar activities that is in support or opposition of candidates.

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IRS To Exam Trade Associations And Labor Organizations In 2011

Tuesday, May 31st, 2011

In its FY 2011 work plan, the Exempt Organizations Division of the IRS announced that they are increasing their focus on Section 501 (c) (4), (5) and (6) organizations.  In their FY 2011 Annual Report and Workplan, the IRS stated that “with the additional information available on the new Form 990, we will look at issues including political activity, inurement and the extent of compliance with the requirements for tax exemption by organizations that self-identified themselves as a Section 501 (c) (4), (5), or (6) organization”.

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Inurement – Is That Really a Word?

Tuesday, May 31st, 2011

Although it is doubtful the word “inurement” is used in normal conversations, the IRS has a particular fondness for its use and is one of the areas they plan to examine in their 2011 audit work plan.  However, even the IRS seems to have difficulty formulating an exact definition of the term, stating that, “Inurement is likely to arise where the financial benefit represents a transfer of the organization’s financial resources to an individual solely by virtue of the individual’s relationship with the organization, and without regard to accomplishing exempt purposes”.
The term appears to be used most frequently when the IRS is discussing organizations exempt under 501(c) (6) which code section states “no part of the net earnings” of an organization may “inure to the benefit of any private shareholder or individual”.  However, the term applies to a number of exempt organizations including 501 (c) (3), (4) and (5) organizations.

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