ipl-logo

Assignment 1: Analysis Of 501 (C) IRS Regulations

614 Words3 Pages

Analysis of 501(c)(3) IRS Regulations
Federal and state laws require 501(c)(3) organizations to comply with regulatory guidelines set forth by either the Internal Revenue Service (IRS) or state regulations to obtain tax-exempt status. The complexity of compliance is determined by the organizations demographics, such as gross receipts, expenses, and assets. Despite the size of the organization’s income, the organization must adhere to the IRS publication 557 for filing requirements and required disclosures. Failure to abide by the IRS rules places an organization at risk for losing its 501(c)(3) status.
Required Disclosures for 501(c)(3) Organization
According to the IRS publication 557, certain organizations must disclose to both the IRS and the public regarding information about their activities (Publication 557, tax-exempt status for your organization, 2016). For example, form 990, is an annual report that must be filed with the IRS. Form 990 provides a detailed overview of the organization’s activities that include governance and management disclosure, compensation of key personnel, identity of source receipts, assets, and other financial statements (Instructions for form 990 return of organization exempt from income tax, 2015). In addition to form 990, there are a number of other disclosures requirements forms, …show more content…

For instance, organizations who fail to submit form 990 for three consecutive years will face automatic revocation of the tax-exempt status and daily monetary penalties (Publication 557, Tax-exempt status for your organization, 2016. p.18). Additionally, there are five separate monetary penalties for the failure to allow public inspections of particular documents required and set forth in publication 557. An example of applicable IRS penalties for failure to comply with inspections includes annual returns and exemption

Show More
Related

Form 1095-B Case Study

495 Words | 2 Pages

With the advent of the ACA (Affordable Care Act) reporting requirements, many companies are unclear as to what forms they need to complete and submit. Form 1095-B is one of the forms causing confusion. However, by understanding how your company handles health insurance coverage for its employees, you can determine if you are responsible for filing Form 1095-B every year. What is Form 1095-B? The ACA requires that all individuals have health insurance or face tax penalties.

Read More

Taxpayer Case Study

604 Words | 3 Pages

Dear Mr. Gaylord Bigmoney: Thank you for contacting me to review your investments and for advice on whether or not to purchase additional state and municipal bonds. Mr. Rich Broker has given you a couple recommendations about your investment portfolio. First, Mr. Broker has recommended that you take the cash presently invested in the Certificates of Deposits and purchase more state and municipal bonds. Second, Mr. Broker has recommended that you borrow an additional $800,000 on one of the unencumbered apartment houses, which would require you to give a Deed of Trust for security on the loan, and use the loan proceeds to purchase more state and municipal bonds. When Mr. Broker gave you these recommendations the rates were as follows: present

Read More

Similarities Between Super Pacs And 501c4s

1141 Words | 5 Pages

In today’s government, there are two groups that can influence the way people vote for candidates in political races. They are known as a Super Pac and 501c4. Super Pacs are committees that became significant in 2010 after the court decision in the SpeechNow.org v. Federal Election Commission (Super Pacs). A 501c4 is referred as “social welfare” groups. Their primary focus is to promote social welfare causes (Sullivan).

Read More

The Affordable Care Act: Copies Of Form 1095-C.

637 Words | 3 Pages

All Forms 1095-C will include some basic information, such as the employee’s name, Social Security number, and address. Employer information, including name, Employer Identification Number, address, and telephone contact, are also included. Who Needs to

Read More

Pros And Cons Of Campaign Finance Reform

1107 Words | 5 Pages

Limiting independent expenditures is circumscribing the money spent by individuals and groups such as 527s – types of U.S. tax-exempt organizations organized under Section 527 of the U.S. Internal Revenue Code – and super PACs – types of independent political action committees which may raise unlimited sums of money from corporations, unions, and individuals, but are not permitted to contribute to or coordinate directly with parties or candidates – for candidates and parties that the individuals and groups are not directly affiliated with. Proponents have several viable arguments in favor of the proposal. One of the cogent

Read More

Income Tax Act Of 1797: A Case Study

290 Words | 2 Pages

The Stamp Act of 1797 was officially rescinded when the war was concluded. When the civil war started, property tax was reinstated to help finance the needs of the government. However, it was different to the Stamp Act of 1797. The Tax Act of 1862 was created for the first time to impose the inheritance tax and succession tax. In 1864, the rates of inheritance taxes and succession taxes were increased to generate more revenue.

Read More

Wabash Mission Statement

627 Words | 3 Pages

The non-profit organization does not reveal its financial health with transparency. The web page has no visual annual report, nor any links to follow the finances. “Be informative” and “Transparency” (Brinckerhoff, 2009) are two important attributes for your organizations financial health to the public. Further research on the web, the discovery of 85 Hope finances revealed revenue in 2012 of $87,265 and 2013 revenue of $76,776. The total liabilities of $5,851 in 2012 and in 2013 $2,748 are reported.

Read More

Voluntary Spirit Model

1022 Words | 5 Pages

With regard to monetary resources, nonprofit organizations are income tax exempt, according to the Internal Revenue Service (IRS); yet the level at which charitable giving is tax deductible varies according the IRS categories of nonprofit organizations (Worth, 2017). Ultimately, this privilege should cause nonprofit organizations, regardless of where how they operate with the spectrum of the two models, to effectively expend resources. Specifically, the volunteer spirit model encourages volunteerism centered on a democratic philosophy of sharing the burden of the cause, and this create a more effective foundation for using charitable donations directly for the cause or service (Brainard & Siplon, 2004). In contrast, the economic model, leaning toward paid staff and relying on material or monetary incentives, may be using charitable donations ineffectively (2004).

Read More

Habitat For Humanity Financial Review Paper

450 Words | 2 Pages

Habitat for Humanity Financial Review This paper will evaluate Habitat for Humanity’s overview of their income statement, balance sheet, statement of cash flows, and analyze changes over the next three years. It will provide an overview of the nonprofit organizations ability to provide understandable and reliable financial information to the public. It will also discuss the importance of following the Financial Accounting Standards Board’s (FASB) ruling on what nonprofits are required to report. Pie Chart of Income Statement Habitat for Humanity shows a very well rounded pie chart of their revenue sources verses their expenditures in 2016.

Read More

Tax Form 990 Case Study

943 Words | 4 Pages

Title: Everything You Need to Know About the Non Profit Tax Forms 990 Very similar to the other businesses, even the non profit organizations need to go through the hectic procedure of filing their tax returns. In spite of the fact that a non profit organization might be tax-exempt, it still needs to file and even pay the taxes. It is to be kept in mind that tax compliance is required at country, local, federal and state levels. Thus, non profit organizations cannot afford to ignore this problem. Some significant tax considerations and non profit tax forms 990 have been detailed below: Filing Form 990 Online

Read More

IRS: An Offer In Compromise

843 Words | 4 Pages

These resources were used in prior modules, but their use in this module further exposed the value that they hold for tax research. Specifically, IRS.gov provides access to a plethora of forms available to taxpayers including the documents that provide taxpayers with the information on the forms available, instructions in how to properly fill out the form, and/or when to use a given form. In addition to the forms and associated documentation, many IRS publications are available on the site as well. Although these publications were available on IRS.gov, one may turn to RIA Checkpoint for this portion of the assignment. The main reason that this tool may be selected, as opposed to using IRS.gov further, is because of the search feature and capabilities of RIA Checkpoint.

Read More

Nonprofit Organizations: Annotated Bibliography

468 Words | 2 Pages

Government often lacks development and growth (Lee, 2010). Therefore, nonprofit are forced to develop through other factors such donations or sponsorships. ASNC as an example serves the state of North Carolina and only received 15% of its fund form a state contract. 74% from other program services and 11% from donations other grants (2018) Retrieved from https://www.autismsociety-nc.org/finacials/. The factors of nonprofits has a great deal to do with its governing of boards.

Read More

Steppingtone Theater Case Study

474 Words | 2 Pages

• When I looked at Steppingstone Theatre’s website, they did not have an expense for lobbying program yet and their current staffs are not covering this part either . 3. Based on how much lobbying programs nonprofit organizations want to do, wisely consider which test they want to adopt • Substantial Part Test and 501(h) Expenditure test have their own advantages and disadvantages, so it is important for nonprofit organizations to figure out which one fits their situation the best

Read More

Financial Planning Case Study Alzheimer's

571 Words | 3 Pages

Investment account statements and the most recent tax return are a good addition. Each person’s

Read More

Form 1040 Week 1 Case Study

1157 Words | 5 Pages

On form 1040 the first section we come to is the personal information section for the client’s to enter their personal data there. This type of information includes their names, address, and also their social security numbers.

Read More

More about Assignment 1: Analysis Of 501 (C) IRS Regulations

Related Topics

Open Document