EO Update December 5, 2006
Issue Number 2006-21
Inside This Issue
- Interim Guidance on Supporting Organizations & Donor Advised Funds
- New Recordkeeping Required for Charitable Contributions by Payroll Deduction
- Reminder - You May be Required to File Electronically in 2007
- FAQs about Exempt Organizations Revised
- e-File News
1. Interim Guidance on Supporting Organizations
Notice 2006-109 provides interim guidance on requirements enacted as part of the Pension Protection Act of 2006 that affect supporting organizations, donor advised funds, and private foundations that make grants to supporting organizations..
This notice is intended to address a limited number of issues which require immediate guidance. The IRS and Department of Treasury expect to issue further guidance, including regulations, under these provisions of the Pension Protection Act of 2006.
2. New Recordkeeping Required for Charitable Contributions by Payroll Deduction
Notice 2006-110 provides guidance on how charitable contributions made by payroll deduction may meet the new recordkeeping requirements of section 170(f)(17) , added by the Pension Protection Act of 2006. This new provision requires a taxpayer to maintain a bank record or written communication from the donee showing the name of the donee organization and date and amount of the contribution.
3. Reminder - You May Be Required to File Electronically in 2007!
Exempt Organizations are reminded that they may be required to file certain returns electronically. For tax years ending on or after December 31, 2006, the electronic filing requirement applies to exempt organizations with $10 million or more in total assets if the organization files at least 250 returns in a calendar year, including income, excise, employment tax and information returns. Private foundations and charitable trusts will be required to file Forms 990-PF electronically regardless of their asset size, if they file at least 250 returns annually.
4. FAQs about Exempt Organizations Revised
Additional FAQs about issues of interest to the general public about exempt organizations have been posted.
5. e-File News
e-File Statistics for Year to Date ending 12/3/2006