EO Update December 3, 2010
Issue Number: 2010-27
Inside This Issue:
- Share Our Widget: Help Small Tax Exempt Organizations Learn about the Small Business Health Care Tax Credit
- IRS Issues Forms and Guidance on Small Business Health Care Tax Credit
- New 990 Filing Thresholds for 2010 Tax Year
- Political Organization Filing Due Dates
- Workshops for Small and Mid-Size 501(c)(3) Organizations
- IRS Issues Reminders to Tax Preparers
1. Share Our Widget: Help Small Tax-Exempt Organizations Learn About the Small Business Health Care Tax Credit
Many eligible small tax-exempt employers may not be aware that they may be entitled to claim the Small Business Health Care Tax Credit, enacted as part of the Affordable Care Act earlier this year.
To help eligible small 501(c) organizations learn about the tax credit, post our new widget, Small Nonprofit? Check Your Way to a Tax Break, on your website and social network pages. The widget briefly explains how to qualify for and claim the credit and links to detailed up-to-date information on IRS.gov.
To post the widget on your website or social network page follow the Instructions on IRS Marketing Express.
For additional information on the Small Business Health Tax Credit, as well as FAQs and other resources, go to IRS.gov.
2. IRS Issues Forms and Additional Guidance on Small Business Health Care Tax Credit
The Internal Revenue Service announced yesterday that it has released final guidance for small employers eligible to claim the new small business health care tax credit for the 2010 tax year.
The IRS issued Notice 2010-82, which expands upon Notice 2010-44, and is designed to help small employers correctly figure and claim the credit and provide guidance on additional issues relating to the credit.
Tax-exempt organizations will use Form 8941, Credit for Small Employer Health Insurance Premiums, and its instructions, to figure their refundable credit for the 2010 tax year, and then claim the credit on Line 44F of Form 990-T, now available in draft form on IRS.gov. Though primarily filed by organizations liable for the tax on unrelated business income, Form 990-T will also be used by any eligible 501(c) tax-exempt organizations to claim the credit, regardless of whether they are subject to this tax.
Other small employers without tax-exempt status will also use Form 8941 to compute their credit.
3. New 990 Filing Thresholds for 2010 Tax Year
Do you know which Form 990-series return you are required to file for the 2010 tax year? The 990 filing thresholds for the year 2010 and later (filed in 2011 and later) will change as follows for all organizations required to file a Form 990-series return:
- Organizations with gross receipts normally ≤ $50,000 must file Form 990-N (but may choose to file a complete Form 990 or Form 990-EZ). In prior years only organizations with gross receipts normally ≤ $25,000 could file the Form 990-N ("e-postcard").
- Organizations with gross receipts > $50,000 and < $200,000 and total assets < $500,000 must file Form 990-EZ or a complete Form 990.
- Organizations with gross receipts > $200,000 or total assets > $500,000 must file Form 990.
- Private foundations must file Form 990-PF
4. Political Organization Filing Due Dates
Due dates for Section 527 political organizations required to file Forms 8872 for 2011 are now available on IRS.gov. During a non-election year, a political organization has the option to file on either a monthly or semi-annual schedule. Organizations must continue filing on the same schedule throughout the calendar year. Monthly filers report beginning with the first month of the year in which they accept a contribution or make an expenditure.
5. Workshops for Small and Mid-Size 501(c)(3) Organizations
Register now to attend a workshop for small and mid-size 501(c)(3) organizations:
- December 7-9: Phoenix, AZ
- March 1-3: New Orleans
- March 29-31: Las Vegas, NV
Click on the city of your choice for registration information.
Each one-day workshop, presented by experienced Exempt Organizations specialists, will explain what 501(c)(3) organizations must do to keep their tax-exempt status and comply with tax obligations. This popular introductory workshop is designed especially for administrators or volunteers who are responsible for an organization's tax compliance as well as those interested in careers in the nonprofit sector.
Go to our Calendar of Events for more information about upcoming workshops.
6. IRS Issuers Reminders to Tax Preparers
The Internal Revenue Service announced it has started sending out more than 10,000 letters to tax return preparers nationwide to remind them of their obligation to prepare accurate tax returns on behalf of their clients.
The IRS also reminded tax preparers that it recently launched a new online application system to obtain a Preparer Tax Identification Number (PTIN). All paid tax return preparers who prepare all or substantially all of a tax return are required to use the new registration system to obtain a PTIN.