Non-Profit Organizations
Organizations seeking recognition of exemption from federal income tax includes a church or a convention or association of educational, or organization operated for the benefit of certain state and municipal colleges and universities or a hospital or medical research organization.
Recent legislation contains a number of significant provisions affecting tax-exempt charitable organizations described in section 501(c)(3) of the Internal Revenue Code.
These provisions include: 1.
New substantiation requirements 2.
Public disclosure requirements imposed on the organizations that fail to comply In general, the new tax law provides that charitable organizations that receive a "quid pro quo contribution" of more than $75 must provide a written disclosure statement to the contributor regarding the deductibility of the contribution.
A quid pro quo contribution is defined as a payment made to a charitable organization that is partly in consideration for good or services furnished to the donor by the organization and partly as contribution to the organization.
Exempt churches, their integrated auxiliaries, and conventions or associations of churches are not required to file federal income tax returns or for that matter the usual information return filed by tax-exempt entities, the Form 990, Return of Organization Exempt from Income Tax.
However, the organization may have to file federal income tax, if it is generating gross income form an unrelated business of $1,000.
Organizations that are required to file federal income tax, generally must file on or before the 15th day of the 5th month following the end of their annual accounting period.
An organization that conducts gambling activities is required to report gambling winnings if it pays out either $600 or more from a wagering transaction.
If the winnings exceed $5,000, then they are subject to regular gambling withholding.
To learn more about Asset Protection, please visit our website at: http://www.
stevensearsattorney.
com or call our firm to discuss these matters in more detail.
Recent legislation contains a number of significant provisions affecting tax-exempt charitable organizations described in section 501(c)(3) of the Internal Revenue Code.
These provisions include: 1.
New substantiation requirements 2.
Public disclosure requirements imposed on the organizations that fail to comply In general, the new tax law provides that charitable organizations that receive a "quid pro quo contribution" of more than $75 must provide a written disclosure statement to the contributor regarding the deductibility of the contribution.
A quid pro quo contribution is defined as a payment made to a charitable organization that is partly in consideration for good or services furnished to the donor by the organization and partly as contribution to the organization.
Exempt churches, their integrated auxiliaries, and conventions or associations of churches are not required to file federal income tax returns or for that matter the usual information return filed by tax-exempt entities, the Form 990, Return of Organization Exempt from Income Tax.
However, the organization may have to file federal income tax, if it is generating gross income form an unrelated business of $1,000.
Organizations that are required to file federal income tax, generally must file on or before the 15th day of the 5th month following the end of their annual accounting period.
An organization that conducts gambling activities is required to report gambling winnings if it pays out either $600 or more from a wagering transaction.
If the winnings exceed $5,000, then they are subject to regular gambling withholding.
To learn more about Asset Protection, please visit our website at: http://www.
stevensearsattorney.
com or call our firm to discuss these matters in more detail.