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EO Update July 20, 2007

Issue Number 2007-15


In This Issue

1. Interim Hospital Study Issued
2. Rev. Proc. 2007-52: Exemption Application Procedures Updated
3. IRS to Notify Small Organizations of New Information Reporting Requirement
4. IRS to Notify Supporting Organizations of New Filing Requirement
5. Proposed and Temporary Prohibited Tax Shelter Regulations Issued
6. Common Tax Law Restrictions on Activities of Exempt Organizations


1. Interim Hospital Study Issued

The IRS has released an interim report, based on responses by almost 500 tax-exempt hospitals to a May 2006 questionaire about how they provide and report benefit to the community. The report provides preliminary information. The IRS is still in the process of analyzing the reported data.


2. Rev. Proc. 2007-52: Exemption Application Procedures Updated.


The IRS has issued Rev. Proc. 2007-52, which provides updated procedures for issuing determination letters and rulings on exempt status under sections 501 and 521 of the Internal Revenue Code, effective July 23, 2007. These new procedures will be updated annually.


3. IRS to Notify Small Organizations of New Information Reporting Requirement

The IRS announced that it has started mailing educational letters to more than 650,000 small tax exempt organizations that may be required to submit a new annual notice, Form-990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ. Further details, including frequently asked questions and a copy of the educational letter are also available on the Charities and Nonprofits section of the IRS.gov.


4. IRS to Notify Supporting Organizations of New Filing Requirement

The IRS has started mailing educational letters to small supporting organizations to inform them of new filing requirements as a result of legislative changes that are effective for tax periods ending after August 17, 2006


5. Proposed and Temporary Prohibited Tax Shelter Regulations Issued

The Treasury Department and the IRS have issued proposed and temporary regulations under IRC section 4965, which impose excise tax and disclosure requirements with respect to prohibited tax shelter transactions to which tax-exempt organizations are parties. Comments on the proposed regulations must be submitted by October 4, 2007.


6. Common Tax Law Restrictions on Activities of Exempt Organizations

The IRS has published a chart that sets out seven federal tax law attributes of
501(c)(3),501(c)(4), 501(c)(5), 501(c)(6) and 527 organizations.  The chart
indicates whether such organizations may:

  • receive tax-deductible contributions
  • receive contributions or fees deductible as a business expense
  • engage in legislative advocacy
  • engage in candidate election advocacy
  • engage in public advocacy not related to legislation or election of candidates 

The chart also indicates whether an organization's substantially related income
and investment income are exempt from federal income tax.


 

Page Last Reviewed or Updated: 03-Jun-2013