EO Update June 15, 2010
Issue Number: 2010-14
Inside This Issue:
- IRS Issues Regulations on Tax on Tanning Services Effective July 1
- Affordable Care Act Implementation
- TE/GE Advisory Committee Issues Report of Recommendations
- Apply for LITC Matching Grants Now
1. IRS Issues Regulations on Tax on Tanning Services Effective July 1
The IRS announced the release of regulations outlining the administration of the 10-percent excise tax imposed on indoor tanning services by the Patient Protection and Affordable Care Act. Effective July 1, providers of indoor tanning services are required to collect the tax at the time the purchaser pays for tanning services. The provider then pays over these amounts to the government, quarterly, along with Form 720, Quarterly Federal Excise Tax Return. Written and electronic comments on the regulations must be received by September 13, 2010.
2. Affordable Care Act Implementation
The IRS is working hard to implement the Affordable Care Act, signed into law on March 23, 2010. Learn more about Affordable Care Act tax provisions that may apply to your tax-exempt organization and read the latest news release and published guidance.
3. TE/GE Advisory Committee Issues Report of Recommendations
The Advisory Committee on Tax Exempt and Government Entities (ACT) released its ninth report at its public meeting on June 9, 2010. The report includes Getting It Right -An Online Guide to Setting Executive Compensation for Charities which describes a prototype webinar on compensation developed by the EO members of the ACT.
4. Apply for LITC Matching Grants Now
The Internal Revenue Service has announced the opening of the 2011 Low Income Taxpayer Clinic (LITC) grant application process. Applications must be submitted no later than July 16, 2010.
IRS awards LITC matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain low income taxpayer clinics. Examples of qualifying organizations include:
- Clinical programs at accredited law, business or accounting schools whose students represent low-income taxpayers in tax disputes with the IRS, and
- Tax-exempt organizations that represent low-income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.