EO Update May 18, 2010
Issue Number: 2010-12
Inside This Issue:
- Commissioner Shulman Issues Statement on the Filing Deadline for Small Charities
- Tax Credit for Employee Health Insurance Expenses of Small Employers
- Form to Claim Payroll Tax Exemption for New Hires Now Available
- IRS Names New Members to ACT
- Political Organization Filling and Disclosure Application Unavailable May 22-23
- Public Comments Invited on 2010-2011 Priority Guidance List
- Spring Statistics of Income Bulletin Released
1. Commissioner Shulman Issues Statement on the Filing Deadline for Small Charities
In a statement issued today, Commissioner Shulman urged the many small tax-exempt organizations that have yet to file their required information return to do so ---even though the May 17 filing deadline has passed. Shulman assured small organizations that the IRS will do what it can to help them avoid losing their exempt status.
Learn how easy it is to file the Form 990-N (e-Postcard) and get more information about automatic revocation for failure to file an information return or notice for 3 consecutive years on IRS.gov.
2. Tax Credit for Employee Health Insurance Expenses of Small Employers
The IRS has announced guidance to make it easier for small business and tax-exempt organizations to determine whether they qualify for the new healthcare tax credit under the Patient Protection and Affordable Care Act (PPACA) and to estimate the amount of the credit. For the years 2010 to 2013, a small tax-exempt employer may be entitled to a maximum credit of 25% of the employer's health insurance premium expenses that count toward the credit.
Notice 2010-44provides detailed guidelines and examples, and requests public comment on issues to be addressed in future guidance. The IRS will provide additional information on how tax-exempt organizations may claim the credit.
Visit IRS.gov for Q&As and other information about the credit, especially as it relates to tax-exempt organizations.
3. Form to Claim Payroll Tax Exemption for New Hires Now Available
The Internal Revenue Service announced that the newly-revised payroll tax form that most eligible employers, including tax-exempt organizations, can use to claim the special payroll tax exemption that applies to many new workers hired during 2010 is now posted on IRS.gov.
Designed to encourage employers to hire and retain new workers, the payroll tax exemption was created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18.
4. IRS Names New Members to ACT
The IRS has announced the selection of four new members to the Advisory Committee on Tax Exempt and Government Entities (ACT) for the term starting in 2010 and ending in 2012. The ACT is a formal body consisting of external stakeholders who represent employee retirement plans, tax-exempt organizations, tax-exempt bonds and federal, state, local and Indian tribal governments. New members representing the exempt organizations community are Karen A. Gries of Minneapolis, MN, a principal with LarsonAllen LLP and Celia Roady of Washington, D.C, a partner in Morgan Lewis & Bockius, LLP.
5. Political Filing and Disclosure Application Unavailable May 22-23
The Political Organization Filing and Disclosure application will be unavailable from 8:00 am EST Saturday, May 22, 2010, through Sunday, May 23, 2010. The POFD login and search functions will not be operational during the shutdown, which is necessary in order to make storage upgrades.
6. Public Comments Invited on 2010-2011 Priority Guidance List
The Department of Treasury and IRS invite public comments on recommendations for items that should be included on the 2010–2011 Guidance Priority List. While taxpayers may submit recommendations at any time, those submitted by June 30, 2010, will be reviewed for possible inclusion on the original 2010-2011 Guidance Priority List.
7. Spring Statistics of Income Bulletin Released
The IRS has released the Spring 2010 issue of the Statistics of Income Bulletin which includes an article on noncash charitable contributions reported by individuals.